Welcome!

Weblogic Authors: Yeshim Deniz, Elizabeth White, Michael Meiner, Michael Bushong, Avi Rosenthal

Related Topics: Weblogic, Log Management

Weblogic: Article

With Market Accelerating, HP Raises Guidance

Q1 net revenues came to $31.2 billion, up 8%

HP News, Views & Updates on Ulitzer

After things clicked for HP in the January quarter and it sniffed an “accelerating market,” it decided to raise its outlook for the year believing it can outperform the market. CEO Mark Hurd says 2010 ain’t gonna be 2009 redux, at least not for HP. He’s predicting growth of 6%-7% and an earnings tickle of 14%-15%. He also means to hire, at least in sales.

In its first fiscal quarter HP’s net revenues came to $31.2 billion, up 8%, making for earnings of $2.3 billion, or 96 cents a share, up 25%. It earned $2.7 billion before charges. It exceeded its own and Wall Street expectations on the revenue side by better than a billion dollars. Hurd’s cost-cutting didn’t hurt the earnings.

HP said it saw double-digit year-over-year growth in printers, industry standard servers and PCs. Printers, HP’s old gold mine, performed the best in three years in terms of shipments and if it wasn’t for product shortages, Hurd said he could have sold more.

The Americas were up 9% to $13.6 billion and Asia Pacific up 26% to $12.1 billion in revenues. EMEA overall is still stuck in the mud with revenue up only 1% to $5.4 billion. Revenue from outside of the United States accounted for 65% of HP’s total revenue, with revenue in the BRIC countries increasing 41% and now accounting for 10% of total revenue.

The company’s Enterprise Storage and Servers (ESS) unit came in with revenue of $4.4 billion, up 11%. Industry standard server revenues increased 27%; storage revenue dropped 3% with the mid-range EVA product line down 5%. Business Critical Systems revenue declined 22%, while ESS blade revenue was up 24%. Its operating profit was $552 million, or 12.6% of revenue.

Printer revenues increased 4% to $6.2 billion. Supplies revenue was up 1%. Commercial hardware revenue was up 4% and consumer hardware revenue increased 21%. Unit shipments were up 16%, 11% on the commercial side, 18% on the consumer side. The unit’s operating profit was a flat $1.1 billion, or 17% of revenue.

HP is forecasting double-digit growth in printers this year.

PC unit shipments were up 26%. Revenue increased 20% to $10.6 billion. Notebook revenue was up 25%, desktop revenue increased 16%. Commercial revenues were up 16%, consumer up 26%. PC operating profit was $530 million, or 5% of revenue.

HP said ASPs improved in PCs and some servers.

Services revenue dropped 1% to $8.7 billion. HP said infrastructure technology outsourcing revenue were up 2% to $3.9 billion. Technology services revenue were down 2% to $2.4 billion. Application services came in with $1.5 billion, down 8%, and business process outsourcing with $734 million, down 3%. Operating profit was $1.4 billion, or 15.8% of revenue, up from $1.1 billion, or 12.9% of revenue, in the prior-year period.

Software revenue was flat at $878 million. Operating profit was $167 million, or 19% of revenue.

Financial services revenue was up 13% to $719 million. HP said financing volume increased 30%, and net portfolio assets increased 23%. The unit posted an operating margin of 9.3%, up from 6.4%.

HP’s gross margin for the quarter was 22.8%. Its operating margin was 11.2%.

This quarter HP expects revenue of $29.4 billion-$29.7 billion and non-GAAP earnings of $1.03-$1.05.

For the year, it thinks it can do $121.5 billion-$122.5 billion, up from its previous estimate of $118 billion-$119 billion with non-GAAP earnings of $4.37 to $4.44, up from $4.25 to $4.35.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...