HP shows big jump in profits

Computer giant HP turned in net revenues of $30.8 billion for its financial second quarter, up 13 percent from the same quarter last year.

It turned in net profits of $2.2 billion, up 28 percent compared to last year. HP said that it it had double digit growth in all geographies for the quarter.

Mark HurdThe Americas contributed $13.5 billion, the EMEA (Europe, Middle East and Africa) $11.8 billion and Asia Pacific $5.5 billion. Compared to the same quarter last year, these regions were up 11 percent, 11 percent and 19 percent respectively. Revenues in Brazil, Russia, India and China (BRIC) grew 25 percent and accounted for 10 percent of HP’s revenues.

Breaking out the results according to its business units, HP’s services revenue only grew by two percent, outsourcing revenues grew by six percent and outsourcing was flat. Its software revenues fell.

However, the picture was different in its enterprise storage and servers business unit, which contributed revenues of $4.5 billion, up 31 percent year on year. Its X86 server revenues jumped by 54 percent, and storage revenues were up by 16 percent.  However, its “business critical systems” revneues fell 17 percent.

Desktop and notebook sales from its Personal Systems Group showed a 20 percent leap in unit shipments and contributed $10 billion to HP revenues. Notebook sales were up 17 percent and desktop revenues up 27 percent. Sales to the consumer market rose by 25 percent.

On the print front, revenues were only up by eight percent and contributed $6.4 billion to the total pot.

HP estimates its revenues in its third financial quarter will grow to $30 billion. Mark Hurd, HP’s CEO, described the quarter as “exceptional”. HP is “confident in the enormous opportunity that lies ahead”.