The Palo Alto, Calif., company said net income rose 29 percent and revenue strengthened 16 percent in its fiscal third quarter ended July 31, on a surge in software revenue, healthy demand for computers, especially notebooks, and strong contributions in all of the company's business units.

HP forecasts revenue in the current quarter would be in the range of $27 billion to $27.2 billion, about a 7 percent increase from the just-ended quarter. Total revenue for the current fiscal year would be as high as $103.2 billion or approximately 13 percent above the $91.7 billion reported in fiscal 2006.

"HP's latest results demonstrate continued strength across each of our key businesses and geographies," Hurd said, in a statement. "We are executing increasingly well in creating demand for our innovative products and services, and we are continuing to become a more efficient organization."

The company said net income for the 2007 fiscal third quarter rose to $1.8 billion from $1.4 billion in fiscal 2006 while revenue improved to $25.4 billion from $21.9 billion in the year-ago quarter.

HP's software business posted the strongest revenue increase, up 74 percent from the comparable fiscal 2006 quarter to $554 million. Acquisitions boosted sales in the division, which, while posting record revenue growth, remains one of the company's smallest sales units.

The personal systems group division, HP's largest, boosted revenue to $8.9 billion, up 29 percent from the year-ago quarter. Unit shipments of personal computers in the group rose 33 percent, led by a 54 percent surge in notebook sales. Desktop revenue rose 12 percent.

Other units posted more moderate sales increases with revenue in the imaging and printing group rising 8 percent, to $6.8 billion, and the enterprise storage and servers group recording a 10 percent rise in revenue to $4.5 billion.

HP services' revenue grew 8 percent to $4.2 billion and the company's financial services business reported a 12 percent increase in revenue to $582 million.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved