Hewlett-Packard Co’s (HP) net income jumped 28 percent in the latest quarter as stronger demand for computers is helping to heal a battered technology industry.
The company also raised its forecast for this year, sending shares higher.
The results mark a continued growth in profit at the world’s No. 1 maker of personal computers and printers.
Although HP had been making money even during the height of the recession, its net income had been getting smaller each quarter. But for three straight quarters now, net income has been growing.
The numbers show how deeply dependent HP is on PCs even as it expands aggressively into more profitable areas, such as technology services and computer networking.
HP said after the market closed on Tuesday that it earned US$2.2 billion, or US$0.91 per share, in its fiscal second quarter, which ended on April 30. It earned US$1.7 billion, or US$0.71 per share, in the same period last year.
Excluding special items, it earned US$1.09 per share. Analysts expected US$1.05 per share on that basis.
Revenue rose 13 percent to US$30.8 billion, better than the US$29.8 billion that analysts polled by Thomson Reuters expected. In the same quarter a year earlier, revenue was US$27.4 billion.
For 2010, HP is now predicting profit of US$4.45 to US$4.50 per share, excluding special items. That’s higher than its previous forecast of US$4.37 to US$4.44 per share.
The higher outlook excludes US$0.69 per share in one-time costs, largely related to HP’s restructuring and acquisitions.
When those costs are included, HP now expects its net income this year to be US$3.76 to US$3.81 per share, which is down from its earlier estimate.
The company has been on a buying binge recently as its dependence on PCs wanes.
California-based HP said last month that it’s buying smart-phone pioneer Palm Inc for US$1.4 billion in a bid to beef up HP’s very small mobile phone business. HP’s US$2.7 billion acquisition of 3Com Corp makes it a stronger player in computer networking.
Robust consumer demand has helped buoy PC makers and their suppliers, even as they grapple with anemic corporate appetites for new PCs. HP’s PC division posted a 21 percent revenue increase over last year.
Cathie Lesjak, HP’s chief financial officer, said in an interview that HP saw an “uptick” in orders from smaller businesses and the financial services industry. But as previously predicted, Lesjak said, spending by large corporations “refreshing” their PC fleets will remain weak until the second half of this year.
“We’re not calling for a really big uptick in corporate refresh at this point in time, but we’re definitely seeing some signs there,” she said.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source