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HP bullish after quarterly revenue performance

Customers starting to spend again, but EMEA business still fairly flat

HP bullish after quarterly revenue performance
Mark Hurd claims HP’s product mix and cost structure leaves it well-placed to outperform the market.

Computer giant Hewlett-Packard has raised hopes that the IT industry is returning to a more solid financial footing after posting sales and revenue growth for its November-January quarter.

Fiscal first quarter net revenue picked up 8% year-on-year to $31 billion as both consumers and commercial customers began to purchase new hardware again.

However, it still appears that HP has work to do in Europe, Middle East and Africa, which showed the slowest growth of all the company's regional businesses. EMEA sales rose just 1% compared with the same period last year and actually fell slightly when adjusted for currency effects.

HP attributed "solid performance across the business and disciplined execution on our cost initiatives" to strong growth in cash flow and EPS. Net profits climbed 20% year-on-year to US$3 billion.

"HP is well positioned to outperform the market," declared chairman and CEO, Mark Hurd. "The strength of our portfolio, leaner cost structure and accelerating market momentum gives us confidence to raise our full-year outlook."

On a divisional basis, HP's Enterprise Storage and Server unit registered an 11% rise in sales to US$4.4billion. An increase of 27% in ISS server revenues more than compensated for declines in the company's EVA product lines and business critical systems.

Revenues from its printing arm spiked 4% to US$6.2 billion as consumer appetite for new printing equipment returned. Supplies revenues, meanwhile, crept up by 1%.

HP's PC hardware business, which remains its largest revenue generator, enjoyed a 20% increase in sales to US$10.6 billion, with consumers again showing a stronger penchant to invest than commercial customers.

HP expects second quarter sales to be in the region of US$29.4 billion and US$29.7 billion.

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