HP Reports Increases in Fourth Quarter Results
Services revenue increased 0.4 percent to $9.0 billion in the fourth quarter. Revenue in each of Infrastructure Technology Outsourcing, Application Services and Technology Services grew roughly 1 percent. Business Process Outsourcing revenue was down 11 percent. Operating profit was $1.5 billion, or 16.7 percent of revenue, up from $1.4 billion, or 16.2 percent of revenue, in the prior-year period.
Enterprise Storage and Servers
Enterprise Storage and Servers (ESS) reported total revenue of $5.3 billion in the fourth quarter, up 25 percent. Industry Standard Server revenue increased 32 percent, while Storage revenue increased 14 percent and Business Critical Systems revenue grew 10 percent. ESS blade revenue was up 51 percent. Operating profit was $730 million, or 13.9 percent of revenue, up from $481 million, or 11.4 percent of revenue, in the prior-year period.
HP Software revenue increased roughly 1 percent to $974 million in the fourth quarter. Business Technology Optimization revenue increased 4 percent, and Other Software revenue decreased 6 percent. Operating profit was $247 million, or 25.4 percent of revenue, up from $234 million, or 24.2 percent of revenue, in the prior-year period.
Personal Systems Group
Personal Systems Group (PSG) revenue increased 4 percent to $10.3 billion in the fourth quarter. HP maintained the leading market share position in PCs worldwide with a 2 percent increase in unit shipments. Notebook revenue for the quarter was down 3 percent from the prior year period, while Desktop revenue increased 13 percent. Commercial client revenue was up 20 percent, while Consumer client revenue declined 10 percent. Operating profit improved to $568 million, or 5.5 percent of revenue, up from $460 million, or 4.7 percent of revenue, in the prior-year period.
Imaging and Printing Group
Imaging and Printing Group (IPG) revenue increased 8 percent to $7.0 billion in the fourth quarter. Supplies revenue was up 6 percent, while commercial hardware revenue and consumer hardware revenue were up 22 percent and down 2 percent, respectively. Printer unit shipments increased 14 percent, with commercial printer hardware units up 43 percent and consumer printer hardware units up 7 percent. Operating profit was $1.2 billion, or 17.4 percent of revenue, versus $1.2 billion, or 18.1 percent of revenue, in the prior-year period.