HP posts positive results

Profit rockets by a whopping 1784 per cent for third quarter results

Hewlett-Packard (HP) has posted a steady rise in turnover during the third quarter of 2006.

Turnover for the quarter was $21.9bn, a five per cent rise from the $20.8bn achieved in the Q3 2005.

Net profit according to generally accepted accounting principles (GAAP) for the quarter was $1.5bn, up a huge 1784 per cent from £0.1bn in the same quarter of last year.

Mark Hurd, chief executive of HP, said: "HP delivered another solid quarter with strong revenue growth, improved margins and healthy cash flow. We gained share without sacrificing margins and continue to execute well against our long-term plan. This is visible in our third quarter results and improved fourth quarter outlook."

Eamonn Kennedy, analyst at Ovum, said: "At a corporate level, these results hit many of the right notes as HP continues to enjoy a favourably divergent performance versus IBM and Dell.

"Margin improvements, revenue growth, cashflow and a bolstered share price - there was more than enough good news on these fronts to make for that CEO's favourite: 'another solid quarter'."