Strong PC Sales Lift HP's Earnings



Hewlett-Packard continues to flex its PC muscles. Strong sales in commercial PC servers and mobile products led the company to a 34% increase in net income for its second quarter, ended April 30.

Based on quarterly revenue of $12.4 billion, a 3% gain over last year's $12 billion, HP had net income of $918 million, or 88 cents per share. Last year's second-quarter net income was $685 million, or 65 cents per share. The company saw a 10% increase in orders for the quarter, which it attributes mostly to its commercial and consumer PC lines. Outsourcing services and software, particularly HP's OpenView management tool and Internet software, also saw rapid growth. Overall, computer-related businesses took in $10.5 billion in revenue for the period, up 4% from 1998 second-quarter revenue of $10 billion.

HP president and CEO Lew Platt said in a statement that the successes in the second quarter indicate the company's business units are focused and well prepared to continue growing as they prepare to break into two companies. However, Platt noted that it's uncertain the impact the year 2000 will have on the company's financial performance. Prior to disclosing the quarterly report, HP closed up 2 to 86-3/16.

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