HP quarterly revenue leaps 12%

Hewlett-Packard has reported revenue of $20.1bn and net earnings of $884m for the second quarter of its 2004 financial year,...

Hewlett-Packard has reported revenue of $20.1bn and net earnings of $884m for the second quarter of its 2004 financial year, which ended on 30 April.

Revenue for the quarter was up by 12% from the $18bn reported for the same quarter last year, surpassing $20bn for the first time in the HP's history.

HP experienced "record second quarter revenue in PCs, enterprise hardware, software, services and imaging and printing", said HP chief executive officer Carly Fiorina.

The company's imaging and printing division continued to be the company's most profitable, reporting an operating profit of $953m on revenue of $6.1bn. Revenue from printer supplies was up 15% for the quarter, driven to a large extent by the adoption of colour printing in the workplace.

HP's other sources of revenue, the personal systems group and the enterprise-focused technology solutions group, reported revenues of $6bn and $7.7bn respectively.

While revenue from HP's desktop and notebook products grew at 14% and 26% respectively, the personal systems group managed to report an operating profit of only $45m for the quarter, far less than the $400m reported by the technology solutions group.

Software was the fastest growing segment of the technology solutions group. Led by an increase in sales of HP's OpenCall and OpenView products, the software division's revenue grew by 23% year on year.

Sales of HP servers based on Intel architecture processors were also strong,with unit sales growing by 32% for the quarter, but because of extremely competitive pricing in this segment, revenue for the Intel-based servers grew by 15%.

Revenue from the company's Integrity servers, which are based on Intel's Itanium microprocessors, was double that of the first quarter of 2004, amounting to 16% of the sales and 26% of units shipped by the group's business critical systems division, which also ships HP's AlphaServer, HP 9000 and NonStop systems.

HP's storage revenue, however, was down by 1%.

Revenue from sales in Europe and the Asia-Pacific region grew more rapidly than US sales, which grew at 4% year on year to $8.4bn.  European revenue amounted to $8.3bn, an increase of 17%, and Asia-Pacific revenue grew 22% to $2.4bn.

HP services revenue grew 15%, contributing $3.5bn in revenue to the technology solutions group.

Robert McMillan writes for IDG News Service

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