HP to outpace market, says CEO

Expects IT industry to return to growth in 2010

HP chairman and chief executive officer Mark Hurd said at a meeting with securities analysts that he expects IT industry to return to growth in 2010 and believes that HP will outpace the market.

HP stated that, with its portfolio, global footprint and efficient cost structure, it is poised to gain share while extending its reach into margin-accretive markets.

For fiscal 2010, the company expects revenue to be in the range of $117 billion to $118 billion, while GAAP diluted earnings per share (EPS) to be in the range of $3.6 to $3.7.

On a non-GAAP basis, the company expects diluted EPS to be in the range of $4.2 to $4.3 in fiscal 2010. The non-GAAP diluted EPS estimate excludes after-tax costs of approximately $0.60 per share, related primarily to amortisation of purchased intangibles, restructuring charges and acquisition-related charges.

Mark Hurd said: “Our broad product and services portfolio and global scale give HP a clear competitive advantage. As a result, we see tremendous opportunity to grow our business and improve earnings while delivering value to our customers.”

Looking forward, the company said that it sees opportunities to invest in innovation and sales to expand its portfolio and market coverage. It also plans to improve margins, give its operating leverage on a leaner cost structure, while continuing to invest for growth.

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