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HP posts growth again

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HP continues to grow, with net revenue of $28,3-billion for the fourth quarter, up 15% from a year earlier and up 11% when adjusted for currency effects. 

"Strong performance across our businesses was highlighted by sharp improvement in our software segment," says Mark Hurd, HP chairman and CEO. "We have added over $12-billion of new revenue this year. While we still have more work to do, HP is well positioned to make further progress in the marketplace."
Revenue grew 19% in Europe, the Middle East and Africa to $11,6-billion.
Personal Systems Group (PSG) revenue grew 30% year over year to $10,1-billion, with unit shipments up 31% on a year-over-year basis. This fiscal year, PSG grew $7,2-billion in revenue. Notebook revenue for the quarter grew 49% over the prior-year period, while desktop revenue grew 15%. Commercial client revenue grew 24% year over year, while Consumer client revenue increased 40%. PSG had exceptional growth in emerging markets with more than 100% growth in China, its third-largest market. Operating profit was $589-million, or 5.8% of revenue, up from $336-million, or 4,3% of revenue, in the prior-year period.
Imaging and Printing Group (IPG) revenue grew 4% year over year to $7,6-billion. On a year-over-year basis, supplies revenue grew 6%, commercial hardware revenue grew 5% and consumer hardware revenue declined 5%. Printer unit shipments increased 5% year over year, with consumer printer hardware units up 3% and commercial printer hardware units up 15%. Momentum in key growth initiatives continued, with printer-based multi-function devices up 26%. Operating profit was $1,1-billion, or 14,5% of revenue, flat from the prior year period of $1,1-billion.
Enterprise Storage and Servers (ESS) reported revenue of $5,2-billion, up 10% over the prior-year period. On a year-over-year basis, industry-standard server revenue increased 14%, with x86 blade revenue up 78%. Storage revenue grew 7%, with revenue growth of 6% in external disk storage, including 17% in the midrange EVA line. Business critical systems revenue increased 5%, with Integrity systems growth of 59% offset by declines in PA-RISC and Alpha. Operating profit was $693-million, or 13,5% of revenue, up from $502-million, or 10,7% of revenue, in the prior-year period.
HP Services (HPS) revenue increased 7% year over year to $4,4-billion. Revenue in technology services, consulting and integration, and outsourcing services each grew 7% over the prior-year period. Operating profit was $526-million, or 12% of revenue, up from $505-million, or 12,4% of revenue, in the prior-year period.
HP Software revenue doubled over the prior-year period to $698-million, led by strong growth from the businesses acquired in HP's purchase of Mercury Interactive. On a year-over-year basis, HP OpenView grew 24% excluding Mercury. Operating profit was $177-million, or 25,4% of revenue, up from $60-million, or 17,2% of revenue, in the prior-year period.
HP Financial Services (HPFS) reported revenue of $657-million, an increase of 21% year over year. Financing volume and net portfolio assets increased 23% and 15%, respectively, over the prior-year period. Operating margin was 7,3% of revenue, up from 6,4% in the comparable period last year.
Net revenue for the full fiscal year was $104,3-billion, representing growth of 14%, or 10% when adjusted for the effects of currency.