HP revenues beat forecasts

Computer giant Hewlett-Packard (HP) has posted a less-than-projected decline in net revenue as also an increase in profits for the three months to 31 January.

The company, which went through two years of restructuring and job cuts, has shown results suggesting the technology giant was on a road to recovery.

Quarterly revenues of $28.2 billion were down 1 per cent from a year earlier, but were ahead of analysts' forecasts.

Net income increased 16 per cent to $1.43 billion, up from $1.23 billion a year earlier.

The firm also increased its profit forecast for the year ahead.

According CEO Meg Whitman, HP was in a stronger position today than it had been in quite some time.

She added the progress HP was making was reflected in growth across several parts of its portfolio, the growing strength of its balance sheet, and the strong support it was receiving from customers and channel partners.

Though HP continues to be the world's largest maker of personal computers, demand for its core desktop computers had slumped in recent years.

The company had been attempting to move away from its reliance on personal computers in preference for computing equipment and servers to help run data centres.

The company was able to surpass its expected first quarter earnings and revenue with the PC business delivering sales growth on enterprise demand.

First quarter earnings at the company stood at $1.4 billion or 74 cents a share, on $28.2 billion revenue, against Wall Street's prediction of 84 cents a share on revenue of $27.2 billion.

HP said it expected second quarter non-GAAP earnings of 85 cents a share to 89 cents a share and projected non-GAAP earnings of 3.60 dollars to 3.75 dollars against Wall Street's estimated 89 cents a share and 3.67 dollars a share respectively.