The world's number two computer maker, Hewlett-Packard, has reported a profit before exceptional items in its first quarter after acquiring Compaq Computer Corp but said the economy was still weak.
Excluding a number of items, HP - which employs 2,100 in Leixlip and Dublin - reported a profit $420 million (€428 million), or 14 cents per share. Revenues eased to $16.5 billion from $18.58 billion. When costs associated with the Compaq merger and restructuring are included HP reported a net loss of $2 billion, or 67 cents per share in its fiscal third quarter, ended in July.
A year earlier, the combined operations of HP and Compaq would have reported a loss of $116 billion, or four cents per share.
"Throughout the first 100 days we have kept our eye on the ball," Ms Carly Fiorina, chairman and chief executive of HP, said.
The company reported third-quarter revenue of $16.5 billion, compared to $18.2 billion on a combined company basis in the prior quarter. "Sequentially, combined company revenue declined 9 per cent, while pro forma gross margin increased from 25.5 per cent to 25.7 per cent.
Pro forma operating expenses were up sequentially from 21 per cent to 22.5 per cent of net revenue, reflecting normal seasonality and merger-related sales training and product rollouts," HP said. Operating expenses were down 10 per cent year-over-year, equivalent to $400 million on an absolute dollar basis, the company said. - (Reuters)
