HP has announced financial results for its first fiscal quarter ended 31 January 2010, with net revenue of $31.2-billion, up 8% from a year earlier and up 5% when adjusted for the effects of currency.

In the first quarter, GAAP diluted earnings per share (EPS) was $0.96, up from $0.75 in the prior-year period. Non-GAAP EPS was $1.10, up from $0.93 in the prior-year period. Non-GAAP financial information excludes after-tax costs of approximately $0.14 per share and $0.18 per share in the first quarter of fiscal 2010 and 2009, respectively, related primarily to the amortization of purchased intangibles, restructuring charges and acquisition-related charges.
"HP is well-positioned to outperform the market," says Mark Hurd, HP chairman and chief executive officer. "The strength of our portfolio, leaner cost structure and accelerating market momentum give us the confidence to raise our full-year outlook."
First quarter revenue was up 9% in the Americas to $13.6-billion. Revenue was up 1% in Europe, the Middle East and Africa and 26% in Asia Pacific to $12.1-billion and $5.4-billion, respectively. When adjusted for the effects of currency, revenue was up 7% in the Americas, down 1% in Europe, the Middle East and Africa and up 19% in Asia Pacific.
Revenue from outside of the US in the first quarter accounted for 65% of total HP revenue, with revenue in the BRIC countries (Brazil, Russia, India and China) increasing 41% over the prior-year period while accounting for 10% of total HP revenue.
"Solid performance across the business and disciplined execution on our cost initiatives contributed to strong growth in cash flow and EPS," says Cathie Lesjak, HP executive vice-president and chief financial officer. "We will continue to invest for growth and leverage our scale and global position to take advantage of an improving demand environment."
Enterprise Storage and Servers (ESS) reported total revenue of $4.4-billion, up 11%. Industry Standard Server revenue increased 27% while Storage revenue declined 3% with the midrange EVA product line down 5%. Business Critical Systems revenue declined 22%, while ESS blade revenue was up 24%. Operating profit was $552-million, or 12.6% of revenue, up from $406-million, or 10.3% of revenue, in the prior-year period.
Imaging and Printing Group (IPG) revenue increased 4% to $6.2-billion. Supplies revenue was up 1%, up 4% in constant currency, while Commercial hardware revenue and Consumer hardware revenue increased 4% and 21%, respectively. Printer unit shipments increased 16%, with Commercial printer hardware units up 11% and Consumer printer hardware units up 18%. Operating profit was $1.1-billion, or 17.0% of revenue, versus $1.1-billion, or 18.5% of revenue, in the prior-year period.
Personal Systems Group (PSG) posted a 26% increase in unit shipments and maintained the leading market share position in PCs worldwide. PSG revenue increased 20% to $10.6-billion. Notebook revenue for the quarter was up 25%, while Desktop revenue increased 16%. Commercial client revenue was up 16%, while Consumer client revenue increased 26%. Operating profit was $530-million, or 5% of revenue, up from $436-million, or 5% of revenue, in the prior-year period.
Services revenue decreased 1% to $8.7-billion. Infrastructure Technology Outsourcing revenue increased 2% to $3.9-billion. Technology Services revenue decreased 2% to $2.4-billion. Application Services posted revenue of $1.5-billion and Business Process Outsourcing posted revenue of $734-million down 8% and 3%, respectively. Operating profit was $1.4-billion, or 15.8% of revenue, up from $1.1-billion, or 12.9% of revenue, in the prior-year period.
HP Software revenue was flat at $878 million. Business Technology Optimisation revenue decreased 1% and Other Software revenue increased 1%. Operating profit was $167-million, or 19.0% of revenue, up from $140-million, or 15.9% of revenue, in the prior-year period.
HP Financial Services (HPFS) revenue increased 13% to $719-million. Financing volume increased 30%, and net portfolio assets increased 23%. Operating margin was 9.3% of revenue, up from 6.4% in the prior-year period.
For the second quarter of fiscal 2010, HP expects revenue of approximately $29.4-billion to $29.7-billion. It estimates  full year fiscal 2010 revenue will be approximately $121.5-billion to $122.5-billion, up from its previous estimate of $118-billion to $119-billion.