HEWLETT-PACKARD reported slightly better-than-expected third-quarter results helped by strong server sales, but the company expressed caution about business demand.
The broad-based technology firm reported net earnings of $1.6 billion, or 67 cents a share, for the quarter ended July 31st, down from $2.03 billion, or 80 cents a share, a year ago.
Revenue fell 2 per cent to $27.5 billion versus the average Wall Street estimate of $27.2 billion.
HP’s Irish performance mirrored those at a corporate level, said Martin Murphy, managing director of HP Ireland, who admitted revenues declined in common with the rest of its western European operations.
There were positive signs in the results, but Europe was dragging on the company, said Jane Snorek, senior technology analyst with First American Funds, which owns HP stock.
Both revenue and margins from the services business grew relatively strongly, according to Mr Murphy, but the product market was “difficult”. The early integration of EDS, acquired for $13.9 billion last year, benefited the Irish services business.
He estimates the overall Irish technology market has declined by 25 per cent in the last year, but that HP has managed to win market share from competitors.
Globally, the company gained market share in personal computers and servers in the quarter, and made positive comments about its services business, said Edward Jones analyst Bill Kreher.
Nevertheless, he said “investors may have been looking for a little more bullish commentary on the macro level”.
Mr Murphy said HP was “advanced” in recruiting 500 staff for a new multi-lingual support centre in Leixlip which was announced in March. – (Additional reporting: Reuters)
