What They Say
HP put out its quarterly result for its first fiscal quarter.
- Revenue was up by 8.8% from a year ago to $17 billion. Margins were down slightly from last year to 8.0% from 8.4% and earnigns were $1.1 billion.
- Personal systems were up 15% to $12.2 billion with strong commercial growth (+26%) while consumer revenue was down 1%.Total units were down 6% with notebooks units down 9% and desktops units up 3%. Printing was down in revenue and units.
Dell announced last week that its revenues for its last fiscal year to January 28th were up 17% to $101.2 billion with record PC volumes. Net profit for the year was $4.9 billion, up 31%. For the quarter, revenue was up 16% to $28 billion, while there was a small net loss, despite 13% more operating income. As with HP commercial business in Q4 was up a lot, by 30%, while consumer was up 16%. For the year, the Client Solutions group saw $61.5 billion of revenue with $4.4 billion of operating income.
Lenovo also reported good results with the first quarter at more than $20 billion. Revenue was up 17% to $20.1 billion for the quarter and pre-tax income was $855 million. The ‘Intelligent Devices Group’ was up 16% on revenue to $17.6 billion and with profits up 21% to $1.4 billion. Smartphones maintained a ‘healthy profit’ for the seventh consecutive quarter, with revenue growing strongly at 46% year-on-year and becoming the fastest growing major vendor. Rapid growth was seen in ‘key strongholds’, with revenue in Latin America up 25% year-on-year and revenue in North America more than doubling year-on-year (133%).
What We Think
We don’t like to get too caught up too much in financials, but the PC makers are all doing well at the moment and I thought the boost in commercial spending was significant. I also hadn’t registered the pattern of profits for Lenovo in its smartphone business. At one time it didn’t look as though that was going to get into the black.
Lenovo launched a lot of products at MWC this week. The link takes you to six different press releases. (BR)
New products from Lenovo at MWC
