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HP (Hewlett-Packard) on Tuesday reported a 28% increase in profit to $2.2bn and a 13% rise in revenue to $30.85bn for its fiscal second quarter from a year earlier. The company raised its full year financial outlook, siganlling confidence by the world's biggest PC maker in rebounding technology spending.
However, having spent about $20bn in recent years in acquiring services and software companies, HP's growth is still dependent on the hardware sector as it saw a sales drop in its software unit and slow growth in services. In 2008, HP acquired services supplier Electronic Data Systems (EDS) in a $13bn deal.
"HP had an exceptional quarter with strong performance across every region," said Mark Hurd, HP chairman and chief executive officer. "We've built the best portfolio in the industry, and our customers are responding. We're winning in the marketplace, investing for the future and confident in the enormous opportunity that lies ahead."
Second quarter revenue was up 11% in the Americas to $13.5bn. Revenue was up 11% in Europe, the Middle East and Africa and up 19% in Asia Pacific to $11.8bn and $5.5bn, respectively. When adjusted for the effects of currency, revenue was up 9% in the Americas, up 7% in Europe, the Middle East and Africa and up 10% in Asia Pacific. Revenue from outside of the United States in the second quarter accounted for 66% of total HP revenue, with revenue in the BRIC countries (Brazil, Russia, India and China) increasing 25% while accounting for 10% of total HP revenue.
"HP drove double-digit revenue growth and improving profits, contributing to our twentieth consecutive quarter of year-over-year operating margin expansion," said Cathie Lesjak, HP executive vice president and chief financial officer. "With the improving demand environment, we are accelerating investments for growth while raising our full-year outlook."
PC business reported a 21% revenue gain to $10bn, and reported operating profit rose to 4.7%, from 4.6% a year ago.
