Hewlett-Packard on Wednesday reported quarterly profit jumped 25% amid strong computer sales and it boosted its fiscal-year revenue target to a range of $121.5 billion to $122.5 billion, up from an earlier prediction of $118 billion to $119 billion.
HP, which is the world's biggest PC maker (excluding Taiwanese contract manufacturers in China) reported its global PC unit shipments surged 26% in its quarter, which included Thanksgiving and Christmas as well as the demand spur from Windows 7, the latest version of Microsoft's operating software.
When adjusted for the effects of currency, revenue was up 7% in the Americas, down 1% in Europe, the Middle East and Africa and up 19% in Asia Pacific. Revenue from outside of the United States in the first quarter accounted for 65% of total HP revenue, with revenue in the BRIC countries (Brazil, Russia, India and China) increasing 41% over the prior-year period while accounting for 10% of total HP revenue.
"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."
Net income was $2.3 billion, or 96 cents a share, compared with $1.9 billion, or 75 cents a share, a year ago while first quarter net revenue was $31.2 billion, up 8%, or $2.4 billion, from a year earlier.
In the quarter, the PC division posted its first revenue increase in over a year, rising 20%, to $10.6 billion. Operating profit was up 22%.
The printer division reported a 4% revenue increase, with commercial printer unit sales up 11% and consumer shipments rising 18%.
Hurd said on a conference call that the printer division could have sold more units but had supply problems. "We did our best to meet the demand that we saw," he said. Printer profit was flat from last year. The company strategy is to lose money on printer sales but make a large return from toner sales.
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| The garage in Palo Alto, California, where Stanford University classmates Bill Hewlett (1913-2001) and Dave Packard (1912-1996) founded HP in 1939. |
HP's services division, providing systems for large corporate and government clients, reported a 1% revenue drop to $8.7 billion, though operating profit increased 27%.
