HP profit up 7% despite revenue fall

IT giant Hewlett Packard said yesterday that its cost cutting drive and the performance of its services division helped push profit up 7% during its most recent financial quarter, even though revenues fell 8% to $30.8 billion.

During the three months ending October 31 2009, profit from HP’s services arm amounted to $1.4 billion, up 50% compared to the same quarter of fiscal 2008, while revenues for the division grew 28% to $8.9 billion, according to the company’s financial report.

All other units of HP’s business saw a decline in revenues and flat or shrinking profits. This demonstrates the timeliness of the company’s acquisition of services company EDS in May 2008, without which HP would have suffered a disastrous year.

As it is, the company’s yearly revenues fell by just 3% compared to fiscal 2008, down to $114.6 billion.

Another boon to the business was its China operations, revenues from which grew 20% in the fourth quarter.

Pete Swabey

Pete Swabey

Pete was Editor of Information Age and head of technology research for Vitesse Media plc from 2005 to 2013, before moving on to be Senior Editor and then Editorial Director at The Economist Intelligence...

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