Profits and revenue up at HP

20-11-2007

by Stephen Errity

Computer giant HP has released its financial results for its fiscal fourth quarter, showing a 15 percent increase in net revenue over the same period last year.

The USD28.3 billion earnings from the fourth quarter bring the company's total net revenue for the year to date up to USD104.3 billion. HP also reported increased GAAP operating profits of USD2.6 billion in the quarter, a jump of 38 percent on 2006. Earnings per share stand at USD0.81, up from USD0.60 a year earlier.

Sales of consumer desktops and laptops fuelled much of the firm's growth during the quarter. Globally, the firm maintained its lead in the PC manufacturer table in the third quarter of 2007 with a 2.5 percent jump in market share compared to last year. According to IDC figures it currently has a 19.6 percent share versus nearest rival Dell's 15.2 percent. Moreover, for the second consecutive quarter HP saw year-on-year shipment growth of more than 30 percent.

Commenting on the results, HP's chairman and chief executive officer Mark Hurd said: "Strong performance across our businesses was highlighted by sharp improvement in our software segment. We have added over USD12 billion of new revenue this year. While we still have more work to do, HP is well positioned to make further progress in the marketplace."

The company also registered growth in all of its regions, with a 10 percent increase in the Americas to USD11.9 million, a 19 percent jump in Europe, the Middle East and Africa to USD11.6 billion and a 20 percent increase in the Asia-Pacific region to USD4.8 billion.

Imaging and printing products was the area of slowest growth, showing just a 4 percent increase over the fourth quarter of 2006, while the Personal Systems Group (PSG), which includes consumer desktop and notebook sales, saw a 30 percent spike in revenue. The company's enterprise storage and server division saw moderate revenue growth of 10 percent.

The company is predicting a slight drop in revenue for the first quarter of 2008, to around USD27 billion, while it expects earnings per share to drop to USD0.75. It forecasts total revenue for 2008 will be in the region of USD111 million.

HP employs 4,000 people in Ireland and recently announced the closure of its offices in the Dublin suburb of Clonskeagh. No jobs are to be lost as a result of this, however, with all staff transferring to a new facility at the Liffey Park Technology Campus in Leixlip, which will become the new corporate headquarters for the company in Ireland. The company also has offices in Galway and Belfast.