HP's first-quarter financials boosted by enterprise sales

The computer giant has reported financial results for its first quarter of 2011, showing modest profits, a dip in its personal computer section and a rise in its enterprise-focused servers, storage and networking section
Written by Jack Clark, Contributor

HP's consumer PC sales fell while networking, storage and server sales were up, the company's first-quarter results have revealed.

HP CEO Leo Apotheker

HP's chief executive Leo Apotheker has announced first-quarter revenues of $32bn and earnings of $3bn, as PC sales fell. Photo credit: HP

The results, posted on Wednesday, showed revenues of $32.3bn (£19.88bn) and earnings of $3bn, up four and 17 percent year-on-year, respectively. Revenue was down $1bn from the previous quarter's $33.3bn and earnings were up half a billion from the previous quarter's $2.5bn.

"We are focused on the next-gen datacentre. Storage is a key part of that," said HP chief executive Leo Apotheker in a briefing call. "And our future technology is a great compliment to our strategy and helps us differentiate from our competition there as well."

HP's Personal Systems Group was down one percent, year on year, due to a 12-percent fall in consumer revenue outweighing an 11-percent rise in enterprise.

Its Enterprise Servers, Storage and Networking revenue grew 22 percent year on year to $5.63bn, although that was down slightly on the previous quarter's $5.89bn. HP said the growth over the year was due to "transition to hybrid cloud environments through a converged infrastructure".

Services revenue was down two percent across the year, although the company said that revenue from long-term contracts was promising. HP Software revenue grew five percent yearly; Imaging and Printing, seven percent.

This quarter was HP's first full quarter with Apotheker at the helm. Apotheker replaced Mark Hurd as chief executive of the company in November. HP has accused Hurd, now at Oracle, of breach of contract and threatened misappropriation of trade secrets.

For the next quarter, HP predicted revenues of between $31.4bn and $31.6bn.

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