HP posts strong first quarter

Vendor sees turnover grow 11 per cent for Q1, with PC unit the main growth driver

Technology giant Hewlett-Packard (HP) has landed another blow on direct-selling rival Dell by posting a strong double-digit annual rise in turnover for its fiscal first quarter.

The vendor grew total turnover 11 per cent for the three months to 31 January to $25.1bn. GAAP net profits leapt 26 per cent to $1.5bn.

Most ominously for Dell, it was HP’s PC unit - the Personal Systems Group (PSG) - that provided the main engine of the growth.

PSG’s turnover leapt 17pc year-on-year to $8.7bn, with notebook sales booming 40 per cent on an annual comparison. Operating profits for the unit stood at $414m.

This will come as a slap in the face for arch-rival Dell, which has recently seen HP snatch its crown in the global PC rankings (CRN, 18 January).

HP’s four other product units all posted higher sales and profits for the quarter.

The Imaging and Printing Group, its second largest division, saw turnover improve 7 per cent to $7bn, while both Enterprise Storage and Servers and HP Services managed a 5 per cent sales rise.

On the back of the recent Mercury acquisition (CRN, 8 November), HP Software pulled out 81 per cent annual growth to hit sales of $550m.

Geographically, EMEA saw solid annual growth of 14 per cent, although that falls to a more modest 7 per cent with currency effects stripped out.

HP chief executive Mark Hurd, said: "HP delivered a strong first quarter, with improved margins and solid revenue growth across our businesses. We have a lot of work and opportunities ahead of us.

“I am confident we can continue to execute with discipline and deliver a year of strong financial returns."