Hurd-less HP revs up growth engine in Q3


Hurd-less HP revs up growth engine in Q3

Microscope contributor

Acting HP CEO Cathie Lesjak was flanked by business group executives last night as the company outlined the last set of quarterly results that previous boss Mark Hurd presided over.

The US giant which recently parted with Hurd amid a sex and expenses scandal, posted Q3 sales of $30.7bn, up 11.4% on last year and a 6% rise in profits to $1.8bn, helped by favourable currency translation of roughly 1%.

"We had a solid geographic performance in revenue with each region growing faster than normal seasonality," said Lesjak, who also continues to operate as CFO.

All hardware business units posted growth; Imaging and Printing was up 9% to $6.16bn, Enterprise Servers and Storage grew 19% to $4.4bn, the PC unit rose 17% to $9.9bn, ProCurve organic revenues soared 42%.

Sales of HP Software grew 2% to $863m with Business Technology Optimisation turnover up 3% as Other Software declined 1%. Services revenues were up 1% to $8.6bn or flat excluding the currency tailwind.

On the services division's output, Lesjak said: "We are working on getting our cost structure right, once you get the cost structure right you have the opportunity to bid for business more competitively and we are starting to see that in strong signing".

Stripping cost out and building sales coverage meant HP would "outgrow the market long term," she added.
In the quarter, HP lost out to Acer in the global PC stakes but Personal Systems Group boss Todd Bradley defended what he classified as "solid revenue growth."

"The yard stick I use for PSG has been and remains profitable growth...there is bad business to chase in the PC market if market share is your primary and only goal, that is not what we are looking for."

The printer shortages that have dogged the vendor for the best part of a year have cleared up according to the IPG boss Vyomesh Joshi, as demand for hardware and supplies remained strong but component availability had improved.

There were some concerns from analysts on the teleconference that the top accounts, which Hurd had interacted with, may be feeling a little bit left out following his departure but this was slapped down by management.

Perhaps Hurd was the one feeling left out in the cold last night, if he was even listening that is.

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