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  1.    #1  
    Hi all, Here is a more detailed report about HP 1/4ly profit info. The Palm buyout was just a drop in the bucket in terms of $. However, I am sure they have VERY BIG plans for Palm & webOS!

    Take care, Jay

    Profit Rises at Hewlett-Packard
    By THE ASSOCIATED PRESS

    Profit Rises and Outlook Improves at Hewlett-Packard - NYTimes.com

    SAN FRANCISCO (AP) — The Hewlett-Packard Company said Tuesday its profit rose 28 percent in the latest quarter as demand for computers improved.

    The company also raised its 2010 forecast, sending its shares higher.

    The results underlined the continued growth in profit at the company, the world’s No. 1 maker of personal computers and printers. Although Hewlett had been making money even during the height of the recession, its net income had been getting smaller each quarter. But for three straight quarters now, net income has been growing.

    The numbers show how deeply dependent Hewlett is on PCs even as it expands aggressively into more profitable areas, like technology services and computer networking.

    Hewlett said after the market closed Tuesday that it earned $2.2 billion, or 91 cents a share, in the quarter, up from $1.7 billion, or 71 cents a share, a year earlier.

    Excluding special items, it earned $1.09 a share. Analysts had expected $1.05 a share on that basis.

    Revenue in the period, which ended April 30 and was the second quarter of Hewlett’s fiscal year, rose 13 percent to $30.8 billion, better than the $29.8 billion that analysts surveyed by Thomson Reuters had expected. In the same quarter a year earlier, revenue was $27.4 billion.

    For 2010, Hewlett is now predicting profit of $4.45 to $4.50 a share, excluding special items. That is higher than its previous forecast of $4.37 to $4.44 a share.

    Hewlett, which is based in Palo Alto, Calif., said last month that it was buying the smartphone pioneer Palm for $1.4 billion in a bid to beef up its mobile phone business. Hewlett’s $2.7 billion acquisition of the 3Com Corporation extended its operations in computer networking.

    Robust consumer demand has helped buoy PC makers and their suppliers, even as they grapple with anemic corporate appetites for new PCs. Hewlett’s PC division posted a 21 percent revenue increase over last year.

    Cathie Lesjak, Hewlett’s chief financial officer, said in an interview that Hewlett had an increase in orders from smaller businesses and the financial services industry. But spending by large corporations to update their PC equipment would remain weak until the second half of this year, Ms. Lesjak said.

    Hewlett is increasingly focused on its services business, which was bolstered with the $13.9 billion purchase of Electronic Data Systems in 2008. The services division is now one of Hewlett’s most profitable, alongside its printer-ink business.

    The ink business, however, is under pressure from generic ink makers with lower prices. Services, meanwhile, have largely proved resilient in the down economy, as companies look to outsourcers like Hewlett and I.B.M. for ways to cut costs.

    Hewlett shares rose $1.15, or 2.5 percent, to $47.94 in after-hours trading Tuesday.
    Please Support Research into Fibromyalgia, Chronic Pain and Spinal Injuries. If You Suffer from These, Consider Joining or Better Yet Forming a Support Group. No One Should Suffer from the Burden of Chronic Pain, Jay M. S. Founder, Leesburg Fibromyalgia/Resources Group
  2.    #2  
    PC sales spike drives HP profit growth

    By Chavon Sutton, staff reporterMay 18, 2010: 7:03 PM ET


    PC sales spike drives HP profit growth - May. 18, 2010


    NEW YORK (CNNMoney.com) -- Hewlett-Packard, the world's largest technology company, used its heft to push sales and income higher last quarter as both consumers and businesses upped their spending on HP's computers and printers.

    HP (HPQ, Fortune 500)'s net income rose 28% in its second fiscal quarter, ended April 30, to $2.2 billion, or 91 cents per share. That's up from $1.7 billion a year ago.

    The results excluded 18 cents per share for charges related to recent acquisitions. Without the charges, HP (HPQ, Fortune 500) said it earned $1.09 a share.

    Analysts polled by Thomson Reuters, whose estimates typically exclude one-time charges, expected $1.05 per share.

    Sales rose 13% to $30.8 billion, from $27.4 billion during the same period last year, beating analysts' forecast of $29.8 billion. The big growth came in HP's PC division, where sales rose 21% to nearly $10 billion.

    "We've built the best portfolio in the industry, and our customers are responding," Mark Hurd, HP's chairman and chief executive officer, said in a prepared statement.

    The company boosted its full-year outlook for the second straight quarter. HP expects earnings per share in the $4.45 to $4.50 range, up from its previous forecast of $4.37 to $4.44. It also lifted its sales forecast.

    The raised outlook came as a surprise to analysts, who expected the company to temper its guidance based on pressures from currency fluctuations and economic weakness in Europe, where HP does around a third of its sales.

    "Everyone expected them to guide down their revenue outlook, but you haven't seen that in these numbers," said Jane Snorek, a technology analyst at First American Fund Advisors.

    In a conference call following the earnings release, HP chief financial officer Cathie Lesjak told analysts that the effects on HP of a weak euro would be "much more muted than you might believe," and have been accounted for in the company's forecast.

    Broad-based growth

    Consumer and commercial spending on computers and printers, which comprise about half of HP's sales, continues to climb. The company saw a 20% rise in year-over-year unit sales for its PCs and a 9% increase in printer shipments.

    HP's sales rose in every unit except software, where revenue dipped slightly compared to last year. But analysts were generally pleased with the results, and HP's stock rose 2.5% in after-market trading.

    "Strength was pretty broad-based. They're obviously landing big deals," Snorek said. "This tells me that business activity is picking up."

    In recent months, HP has been on a buying spree. The company in November announced plans to buy 3Com (COMS), a networking gear manufacturer, for $2.7 billion. The deal closed April 12.

    In April, HP announced that it would buy troubled smart phone maker Palm for $1.2 billion. But Mark Hurd was quick to cast the move as "not a smart phone play" -- what HP is really after is Palm's intellectual property, Hurd told analysts on Tuesday's call. Owning Palm will better position HP to take advantage of opportunities in the mobile technology market, he said.

    The industry is waiting eagerly to see what HP will do with its new prize. With Apple's iPad blazing a trail through the tablet market, analysts expect a counter-move from HP. Will HP scrap its moribund current tablet, which uses the Microsoft Windows 7 operating system, for another that features Palm's technology?

    Hurd offered few hints. HP will be a "participant" in the tablet market, but its "extremely important" relationship with Microsoft won't be threatened, he said.

    HP's main rival in the personal computer market, Dell (DELL, Fortune 500), reports its quarterly earnings Thursday.
    Please Support Research into Fibromyalgia, Chronic Pain and Spinal Injuries. If You Suffer from These, Consider Joining or Better Yet Forming a Support Group. No One Should Suffer from the Burden of Chronic Pain, Jay M. S. Founder, Leesburg Fibromyalgia/Resources Group
  3. #3  
    Another nice read, thanks Jay. Now if you can dig out a ball park figure for how much HP will be putting into Palm's R&D budget, and what percentage of that is going each of webOS software development, tablet hardware, smartphone hardware, and marketing. lol
  4.    #4  
    Quote Originally Posted by pip smith View Post
    Another nice read, thanks Jay. Now if you can dig out a ball park figure for how much HP will be putting into Palm's R&D budget, and what percentage of that is going each of webOS software development, tablet hardware, smartphone hardware, and marketing. lol
    Hi thanks, I have not found anything yet. I wonder if even they know how much it will cost in total. HP is already making web ready printers, however, form what else I read today, they are going to use webOS to do so.

    All of this tinkering around with webOS is great for us, since it will add the new Palm division.

    Have a good, one, take care, jay
    Please Support Research into Fibromyalgia, Chronic Pain and Spinal Injuries. If You Suffer from These, Consider Joining or Better Yet Forming a Support Group. No One Should Suffer from the Burden of Chronic Pain, Jay M. S. Founder, Leesburg Fibromyalgia/Resources Group
  5. #5  
    Software unit dropped 1%. Maybe WebOS will boost those numbers by Q4...
  6. #6  
    Quote Originally Posted by ilovedessert View Post
    Hi thanks, I have not found anything yet. I wonder if even they know how much it will cost in total. HP is already making web ready printers, however, form what else I read today, they are going to use webOS to do so.

    All of this tinkering around with webOS is great for us, since it will add the new Palm division.

    Have a good, one, take care, jay
    Yes I bet it is a difficult decision for HP to make. They will want to take over development towards the said printers and slates and possibly app development. But I would assume that they would somewhat leave the development of webOS in the hands of the current palm team, they have done a great job up to now and with some serious cash who knows what they can do.

    Quote Originally Posted by t-minus View Post
    Software unit dropped 1%. Maybe WebOS will boost those numbers by Q4...
    By HP's software, are they referring to their games, dvd suites etc or the OS that is licensed for use on their hardware?
  7. #7  
    Quote Originally Posted by pip smith View Post


    By HP's software, are they referring to their games, dvd suites etc or the OS that is licensed for use on their hardware?
    I don't know. It could be related to their "Touchsmart" products. Maybe they have been losing $$ on the development side?

    They spent about a billion $$ on acquiring Palm plus the $$ invested in Touchsmart so they obviously have a strategy that looks to touchscreen based technology on a PC or the next evolution of the PC.

    Have you noticed HPs latest ad campaign with the british guy?

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