HP posts strong Q1 results

21 Feb 2007

HP’s quarterly profit increased by 26pc and revenue was up by 11pc, the company announced last night.

In its results for the three-month period to the end of January, the world’s largest computer maker reported a profit of US$1.8bn on net revenues of US$25.1bn.

Mark Hurd, HP chairman and chief executive officer, said the company had delivered a strong first quarter and he noted the improved margins and solid revenue growth across our businesses. “We have a lot of work and opportunities ahead of us. I am confident we can continue to execute with discipline and deliver a year of strong financial returns,” he said in a statement.

Asia-Pacific was the strongest performing region in Q1, with revenues up by 15pc. Europe also performed well with numbers up by 14pc year on year, while the Americas revenue grew by 6pc.

The company’s Personal Systems Group revenue grew 17pc year-over-year to US$8.7bn, with unit shipments up 19pc. Notebook revenue increased by 40pc and desktop revenue was down 1pc.

Revenues at the Imaging and Printing Group grew 7pc. Supplies revenue grew 11pc, commercial hardware revenue grew 2pc and consumer hardware revenue was flat. Printer unit shipments increased 18pc year over year, with consumer printer hardware units up 16pc and commercial printer hardware units up 21pc.

The Enterprise Storage and Servers division reported a slight increase of 5pc in revenue. Storage revenue grew 3pc; although the midrange EVA line grew revenue by 18pc, HP said this was offset by declines in the high-end array and tape businesses.

HP Services revenue increased 5pc, while software was the best performer for the company with an increase of 81pc year on year, boosted by HP’s recent acquisition of Mercury.

By Gordon Smith