PALO ALTO, Calif. – Hewlett-Packard continued its revival by ending its second fiscal quarter of the year with net revenue of US$25.5 billion, representing 13 per cent year-over-year growth, or 10 per cent adjusted for the effects of currency.
GAAP operating profit was US$2.1 billion, with record cash flow of $4.2 billion.
However, net profit dropped seven per cent compared to the same period a year ago.
“This was a strong performance for HP,” said chairman and CEO Mark Hurd in a statement. “We generated $3 billion of revenue growth, continued to expand earnings and achieved record cash flow from operations. While we still have considerable work ahead of us, I am confident we can continue to execute with discipline and deliver strong financial returns.”
Personal Systems Group revenue grew 24 per cent year-over-year to $8.7 billion, with unit shipments up 30 per cent on a year-over-year basis. Notebook revenue grew 45 per cent over the prior year period, while desktop revenue grew nine per cent.
HP Software revenue grew 58 per cent over the prior year period to $523 million, led by strong growth from the businesses acquired in the company’s purchase of Mercury Interactive. On a year-over-year basis, HP OpenView grew six per cent excluding Mercury, and HP OpenCall declined 13%. Operating profit was $42 million, or eight per cent of revenue, up from a profit of $3 million, or 0.9% of revenue, in the prior year period.
Imaging and Printing Group revenue grew six per cent year-over-year to US$7.2 billion. The Enterprise Storage and Servers division reported revenue of $4.6 billion, up eight per cent over the prior year period. On a year-over-year basis, industry-standard server revenue increased 17 per cent, with blade revenue up 58 per cent.
Storage revenue grew one per cent, with revenue growth of 10 per cent in the midrange EVA line offset by declines in the high-end array and tape businesses. Business critical systems revenue declined six per cent, with Integrity systems growth of 60 per cent offset by declines in PA-RISC and Alpha systems.