Welcome!

Log Management Authors: Dana Gardner, Pat Romanski, Elizabeth White, David H Deans, Carmen Gonzalez

Related Topics: Log Management, Microservices Expo, Containers Expo Blog

Log Management: Article

HP Still Golden

It was expected to return $1.05 a share on $29.81 billion

HP revenues were up 13% year-over-year to $30.8 billion in the fiscal second-quarter ended April 30. A favorable exchange rate tickled the percentage rate to the tune of four points and HP's recent 3Com acquisition, which closed during the quarter, contributed $50 million. Earnings were up 28% to $2.2 billion or 91 cents a share. Its operating margin worked out to 9.3%, up 0.9%.

HP was expected to return $1.05 a share on $29.81 billion.

CEO Mark Hurd called it an "exceptional quarter with strong performance across every region." Growth was called broad-based driven with enterprise systems and storage up 31% to $4.5 billion, PCs up 21% to $10 billion, and printing up 8% to $6.4 billion. Deferred purchases are starting to come back and Hurd was relatively buoyant about Europe.

CFO Cathie Lesjak said the demand environment was improving - more from SMBs than the large corporates apparently - and that HP would accelerate its strategic investment in growth.

Hurd expressed confidence in the "enormous opportunity that lies ahead" and raised the company's full-year outlook.

HP's second-quarter revenue was up 11% in the Americas to $13.5 billion, 11% in EMEA to $11.8 billion, and 19% in Asia-Pacific to $5.5 billion. HP is now getting 66% of its revenue from outside the U.S., with the BRIC countries up 25% accounting for 10% of revenues.

The company said industry standard server revenue was up a hefty 54%, while storage revenue increased 16% with the midrange EVA product line up 3%. Old-line business critical systems revenue declined 17%, while blade revenue was up 45%. The enterprise unit's operating profit was worth $571 million, or 12.6% of revenue, up from $250 million, or 7.2% of revenue, a year ago.

HP expects to field a new Superdome system probably in Q4.

PCs were up 20% in units. Notebook revenue was up 17%; desktop revenue was up 27%; and workstation revenue, largely from the financial services mob, was up 27%. The elusive commercial client revenue was up 19%, while good ole consumer revenue increased 25%. The unit's operating profit was $465 million, or 4.7% of revenue, up from $378 million, or 4.6% of revenue.

The printer unit, which hasn't been quite the gold mine it used to be lately, showed an increase of 13% in commercial hardware sales and 16% on the consumer side. Printer units were up 9%, with commercial units down 8% and consumer up 15%. Supplies were up 6%. The unit's operating profit was $1.1 billion, or 17.2% of revenue, versus $1.1 billion, or 18.2% of revenue, last year.

Hurd said he was "not thrilled" with the unit number, down 8% in lasers, but the mix was okay and laser ASPs, in part affected by commodity pricing, were up. HP figures to see a 30% increase in units this quarter and an overall stronger second half. He said demand is strong but HP wasn't able to supply it all.

Software remains sluggish for HP, down 1% to $871 million. Its Business Technology Optimization revenue increased 3%, but other software revenue was down 8%. The unit's operating profit was $162 million, or 18.6% of revenue, up from $157 million, or 17.8% of revenue.

Speaking of software Hurd said the company's proposed acquisition of Palm was for its IP, expecting to use its webOS for cloud-based printing and other "interconnected devices." He pooh-poohed it as a smartphone play.

HP's services revenue, which involves its huge acquisition of EDS, increased 2% to $8.7 billion. Infrastructure technology outsourcing revenue increased 6%, while revenue in technology services and business process outsourcing were roughly flat year-over-year. Application services revenue was down 2%. The unit's operating profit was $1.4 billion, or 15.9% of revenue, up from $1.2 billion, or 13.8% of revenue, last year.

The company said ProCurve revenue increased 31%, and HP networking overall increased 58% including the impact of the 3Com acquisition.

HP is projecting revenue this quarter of $29.7 billion-$30 billion, with GAAP earnings of 87 cents-89 cents and non-GAAP EPS of $1.05 to $1.07. For the full year HP expects revenue growth of 8%-9% with GAAP earnings of $3.76 to $3.81, down from its previous estimate of $3.79-$3.86, and non-GAAP EPS of $4.45-$4.50, up from its previous estimate of $4.37 to $4.44.

Its revenue projections do not include Palm.

It exited the quarter with $14.3 billion in the bank.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science" is responsible for guiding the technology strategy within Hitachi Vantara for IoT and Analytics. Bill brings a balanced business-technology approach that focuses on business outcomes to drive data, analytics and technology decisions that underpin an organization's digital transformation strategy.
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Rodrigo Coutinho is part of OutSystems' founders' team and currently the Head of Product Design. He provides a cross-functional role where he supports Product Management in defining the positioning and direction of the Agile Platform, while at the same time promoting model-based development and new techniques to deliver applications in the cloud.
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Dave McCarthy, Director of Products at Bsquare Corporation; Alan Williamson, Principal ...
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user e...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
The Founder of NostaLab and a member of the Google Health Advisory Board, John is a unique combination of strategic thinker, marketer and entrepreneur. His career was built on the "science of advertising" combining strategy, creativity and marketing for industry-leading results. Combined with his ability to communicate complicated scientific concepts in a way that consumers and scientists alike can appreciate, John is a sought-after speaker for conferences on the forefront of healthcare science,...
Disruption, Innovation, Artificial Intelligence and Machine Learning, Leadership and Management hear these words all day every day... lofty goals but how do we make it real? Add to that, that simply put, people don't like change. But what if we could implement and utilize these enterprise tools in a fast and "Non-Disruptive" way, enabling us to glean insights about our business, identify and reduce exposure, risk and liability, and secure business continuity?
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
"The Striim platform is a full end-to-end streaming integration and analytics platform that is middleware that covers a lot of different use cases," explained Steve Wilkes, Founder and CTO at Striim, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.