HP profit jumps but hardware revenue falls

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HP's profit has jumped 14 per cent over the past year, despite a slide in revenue.

The computing giant posted net revenue of $30.8 billion for the quarter, down eight per cent from the fourth quarter last year. Net profit climbed 14 per cent to $2.4 billion.

For the full year, revenue slid three per cent to $114.6 billion, while profit slipped eight per cent to $7.7 billion.

"Our operational execution and improving cost structure generated strong quarterly and year-end results," said Mark Hurd, chairman and chief executive officer, in a statement. "We expect to outperform the market due to our significant scale, broad portfolio and market-leading position."

Services strong

Revenue from enterprise servers and storage tumbled 17 per cent, while software revenue dove 16 per cent.

HP's computer products division posted an eight per cent jump in units shipped, but saw revenue slide 12 per cent to $9.9 billion. Commercial products fell 15 per cent, while consumer revenue slipped eight per cent.

An eight per cent revenue boost for the year in services helped prop up the firm.

"HP's solid performance in services drove record profit, and the accelerated pace in signings creates strong momentum going into 2010," said Hurd.

The services division was boosted last year by the purchase of EDS, which led to massive job cuts.

"Relentless focus on driving efficiencies across the business has given HP a significant competitive advantage," said Cathie Lesjak, executive vice president and chief financial officer, in a statement.

"Our skill in executing strong acquisitions and integrating them seamlessly improves the value of our portfolio, strengthens the business and contributes to our ability to expand in key growth markets in the future," she added.