HP Reports Profit During Time Of Change

Hewlett-Packard on Wednesday reported a profit of $760million for its fourth fiscal quarter, ended Oct. 31, up from $710 million for the comparable quarter last year. Revenue for the quarter was $11.36 billion, compared with revenue of $10.30 billion during the fourth quarter of fiscal 1998.

For fiscal 1999, revenue was $42.37 billion, up from $39.42 billion last year, and net profit from continuing operations increased 16% to $3.1 billion.

Carly Fiorina, HP president and CEO, said financial results in the fourth quarter were impacted by outside issues. "Revenue growth in the computer business is not as good as it should be," Fiorina said in a conference call with press and analysts yesterday. Fiorina said she is challenging her employees to achieve 12% to 15% increases in both revenue and profit for the current fiscal year.

HP was able to balance operations while implementing changes across the board, including a division into two companies-- the computing and imaging business and the test and measurement business, now called Agilent Technologies. The fourth-quarter results represent the computing and imaging business only.

Fiorina said the printing and imaging business did well, but server sales were flat except for the high-end Unix V-class line. The PC business was profitable but impacted by a component shortage in Taiwan, and storage sales slowed because of a partnership transition from EMC Corp. to Hitachi Data Systems. Said Fiorina: "We're showing that we're capable of more than our prior results demonstrated, and we need to aim high."