HP profit rises on business computer buys

February 23, 2011 | 08:06

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US computer colossus Hewlett-Packard reported Tuesday that its net profit climbed to $2.6 billion in the first three months of the year as businesses upgraded systems.

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HP's net revenue climbed to $32.3 billion in the first quarter, compared to $31.2 billion in the same period a year earlier.

Revenue was up four per cent in a year-over-year comparison, while net profit rose 16 per cent with the help of "financial discipline" at the California-based computer company, according to chief financial officer Cathie Lesjak.

"Going forward, we have the opportunity to further capitalize on our customers' demands for higher value-added solutions," said HP chief executive Leo Apotheker.

"HP has a powerful portfolio, including exciting, recently announced cloud and connectivity offerings," he continued in a statement released with the earnings figures. "We are focused on leveraging these strengths to extend our leadership and accelerate growth."

The earnings figures fell short of Wall Street forecasts and HP stock prices fell more than seven percent to $44.76 per share in trading that followed release of the results.

AFP

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