News

posted on 21 May 2008 22:25

HP exemplified the Hurd efficiency gains by reporting an 11 percent increase in revenues in its Q2fy08 quarter but a 16 percent increase in net earnings

Q2fy08 net revenue was $28.3 billion, up $2.7 billion from the year-ago quarter's $25.6 billion. GAAP net earnings were $2.1 billion ($0.80/share) compared to Q2fy07's $1.8 billion ($0.65/share).

Mark Hurd, HP chairman and CEO, said: “HP turned in another strong quarter, supported by improvement across our businesses. With 70 percent of revenue now coming from outside the U.S., we benefited from robust demand in emerging economies. The company’s financial outlook demonstrates its strength in the global marketplace.”

Well, yes indeed.

Geographically the company increased revenues more outside the USA than inside. Revenue in the Americas grew 4% on a year-over-year basis to $11.1 billion. Revenue grew 16% in Europe, the Middle East and Africa to $11.9 billion. Revenue grew 16% in Asia Pacific to $5.2 billion. When adjusted for the effects of currency, revenue in the Americas grew 2%, revenue in Europe, the Middle East and Africa grew 6%, and revenue in Asia Pacific grew 7%. Revenue from outside of the United States in the second quarter was 70% of the total, with revenue in the BRIC countries (Brazil, Russia, India and China) growing 26% over the prior-year period and accounting for 10% of total revenue.

Enterprise Storage and Servers (ESS) reported revenue of $4.8 billion, up 4% over the prior-year period fueled by ESS blades, which grew 68%, and storage, which grew 14%. Storage revenue growth was fueled by the high-end XP line, which grew 21%, and the midrange EVA line, which grew 17%. HP has finally dealt with the high-end storage array problem, persistent over several previous quarters, as the 21 percent revenue growth rate indicates.

HP estimates Q3 FY08 revenue will be approximately $27.3 billion to $27.4 billion.

The sums here are extraordinary. 3PAR's revenue is $35 million a quarter, a fraction of HP's storage revenues and small change set against HP's overall quarterly revenue figure.

^{[B&F staff.]}