Windows XP Revive HP
HP’s third quarter revenue, announced today, rose to US$27.6 billion up 1% from Q3 ’13 – marking the first rise in several quarters.
PC demand drove revenues in Q3, the company’s latest figures show. The rise has been attributed to panic buying after Windows XP support ended in April.
HP also reported net earnings (profit) of $1 billion and operating margin of 5.3% for the quarter to July 31, as its turnaround strategy which included massive job cuts and restructuring, appears to be reaping rewards at the world’s top PC maker.
‘Personal Systems’ sales rose 12% year over year, with desktops up 9% and notebook demand jumping 20%, despite analysts saying the PC market is a dead duck amid continuing tablet popularity.
Commercial PC sales also rose 14%.
But it wasn’t good news – HP’s Enterprise Group saw just a marginal rise while Enterprise services and Software divisions’ all fell.
Printer sales also fell 5% with consumer and commercial demand down.
19% of HP total revenue came from the Asia Pacific region.
Meg Whitman, HP CEO said “overall, I’m very pleased with the progress we’ve made.
“When I look at the way the business is performing, the pipeline of innovation and the daily feedback that I receive from our customers and partners, my confidence in the turnaround grows stronger.”
The main driver of computer sales was Microsoft ending support for Windows XP, Whitman told WSJ, but insisted it wasn’t the only reason.
HP made a massive push on Windows 7 PCs prior to XP’s expiry, capitalising on the older OS’s ongoing popularity.
The US giant has come under massive pressure against Chinese vendor Lenovo, who has emerged as a formidable player in mobile tablets and smartphones, successes which has eluded HP, as well as desktops.
However, Whitman urged caution about future growth: “I don’t know that we’ve turned the corner.”
HP balance sheet was also in good shape with net cash of $4.9 billion up $2.2 billion on Q2.