Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Storage Hurts HP's Quarter

Strong sales of blade servers helped boost HP's fourth-quarter results, although CEO Mark Hurd wants much more from the vendor's storage businesses in the coming year. (See HP Reports Q4.)

Overall, the vendor posed a strong set of results, with revenues up 7 percent year-over-year to $24.6 billion, just beating analysts' estimates of $24.1 billion. "We had a solid quarter over the [HP product] portfolio," explained Hurd on a conference call tonight, but he warned that there is still room for significant improvement. "We're certainly not going on a victory lap."

On a GAAP basis, HP's earnings per share were 60 cents on net income of $1.7 billion, up from 14 cents and $400 million in the same period last year. The vendor's non-GAAP earnings per share were 68 cents on net income of $1.9 billion, up from $1.5 billion and and 51 cents in the fourth quarter of 2005. Analysts had estimated earnings of 64 cents.

For the full year, HP's revenue was $91.7 billion, up from $86.7 billion in 2005, and just above analysts' estimates of $91.2 billion.

After making a slew of blade announcements this year, the technology appears to be paying off for HP. (See HP Unveils Blades, HP Adds Storage Blade, HP Unveils Fast Blade.) The vendor unveiled its c-Class product earlier this year, which aims to combine servers, storage, and high-performance computing blades within a single box. (See HP Brandishes Blades and HP Unveils Blade Design.)

  • 1