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HP Q3 results show 20% software sales growth

Jenny Williams

HP has grown its software sales 20% year-on-year, driven by increased sales of software licences and services, according to the company's third quarter 2011 results.

HP's financial results showed sales of software licences and services grew 29% and 30% respectively year-on-year, pushing overall software sales up 20%. The company's financial services sales grew 22% over the 12-month period. Overall sales were $31.2bn, compared with $30.7bn last year.

HP's commercial businesses sales grew 5% year-on-year over year while its consumer businesses - including its personal systems group (PSG) - were down 15% over the year. The firm said third quarter sales were flat year-on-year in Europe, the Middle East and Africa at $11bn.

Services sales grew 4% while enterprise servers, storage and networking sales grew 7%. Networking sales were up 15% compared to the year before. Business-critical systems were down 9%.


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"Our outlook reflects the challenges we face across our businesses," said Cathie Lesjak, HP executive vice-president and chief financial officer. "Dealing with these challenges will take time, but HP will navigate through the transformation to become a more focused, streamlined company."

HP plans to ditch its Touchpad tablet range, seek a potential buyer for its PC division and acquire UK software company Autonomy for £6.2bn.

"We're focused on improving performance across the business," said Léo Apotheker, HP president and CEO. "HP is taking bold, transformative steps to position the company as a leader in the evolving information economy."

The company re-organised its management roles in June 2011. HP said its organisational changes will more closely align its corporate structure with its overall strategy to build its cloud and software services portfolio for customers.

The supplier estimates full-year sales will be approximately $127.2bn to $127.6bn, down from its previous estimate of $129bn to $130bn.


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