HP grows business 1% in Q2 but corporate products and services take off

HP's latest financial results show corporate users are still buying enterprise IT products and services.

HP's latest financial results show corporate users are still buying enterprise IT products and services.

HP's revenue increased 1% for its second fiscal quarter ended April 30, 2011, compared to the same period the year before.

The Personal Systems Group (PSG) revenue declined 5% year-over-year, with the consumer division seeing a 23% decline in the quarter. However HP says its Commercial Client revenue grew 13%. Shipments of multi-function printers grew 60% year-on-year.

Services revenue grew 2% year-over-year with a 15.2% operating margin. HP says it will be accelerating alignment of the services business with the company's overall strategy, including making investments to drive more of what it describes as "value-added solutions and migration to the cloud".

HP's storage and software businesses grew during the quarter, by 15% and 17% respectively. HP puts its success down to its converged infrastructure products winning datacentre business. HP says it also gained momentum in cloud computing and was seeing interest in its HP CloudSystem product.

HP's financial services division also grew by 17%, reflecting a greater emphasis by corporate users to lease IT and spread costs, over buying equipment outright.

Last month HP won a contract worth $2.5 billion to support 60,000 users at Nasa.

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