Solid Q1 performance boosts outlook for HP

18 Feb 2010

The world’s largest technology company HP has reported US$31.2 billion in revenues, up 8pc on last year. Profits at the company were up 20pc to US$3 billion.

The company attributed the results to a solid performance, stringent cost-cutting exercises and double-digit year-over-year growth in printers, industry standard servers and PCs.

Cash flow from operations was US$2.4 billion, up 114pc, or US$1.3 billion on the previous year.

“HP is well-positioned to outperform the market,” said Mark Hurd, HP chairman and chief executive officer.

“The strength of our portfolio, leaner cost structure and accelerating market momentum give us the confidence to raise our full-year outlook.”

First quarter revenue was up 9pc in the Americas to US$13.6 billion. Revenue was up 1pc in Europe, the Middle East and Africa and 26pc in Asia Pacific to $12.1 billion and $5.4 billion, respectively.

“Solid performance across the business and disciplined execution on our cost initiatives contributed to strong growth in cash flow and EPS,”said Cathie Lesjak, HP executive vice-president and chief financial officer.

“We will continue to invest for growth and leverage our scale and global position to take advantage of an improving demand environment.”

By John Kennedy

Photo: Mark Hurd, CEO of HP

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years