Hewlett Packard has revealed first-quarter profits have more than tripled on the back of strong computer and printer sales to consumers. But the company also at pains to point to point out holes in its business that would be filled by the company’s planned merger with Compaq.
In the three-month period ending January 31, HP reported net profit of $484 million (around £340 million), compared to $141 million, in the year-ago quarter. Revenue dropped 8% to $11.4 billion (around £8 billion).
Excluding acquisition-related charges, HP says it earned $564 million (around £400m), or 29 cents per share, down from $812 million (around £573m), or 41 cents per share, a year ago.
HoweverChairwoman and chief executive Carly Fiorina carefully used the earnings report to tout HP’s execution in a tough atmosphere and to lament the company’s holes – notably in business PCs, networked data-storage systems and low-end servers, a hold that would be filled by the company’s planned merger with Compaq.
These results demonstrate we know our business – better than anyone else, she said.
The simple fact is, HP has a lot going for it, but there are also significant areas where a lot more is needed. And with Compaq, we have a detailed plan, not just platitudes, to address them.