September 1999

Its third quarter report saw HP put growth doubts to rest

Rene Woc stands backstage at Adager, but his experience makes him a major HP 3000 player. The HP’s third quarter report showed the company beating analyst estimates for profits while posting strong revenue growth, riding an acceleration of overseas sales to counter slower-than expected Unix orders. HP increased its third quarter sales by 11 percent over last year, its first double-digit revenue growth in more than a year, while its profits jumped by 37 percent — even counting $60 million in spinoff costs for Agilent, its new test equipment company.

A conference call with analysts revealed that “Incoming order volume relating to Unix servers was disappointing, due to the delay in N-class midrange shipments.” Revenue from computing and imaging, the part of HP that includes the 3000, totaled $10.3 billion. Growth was strongest in Asia, which has the most room to improve, while European business grew by 13 percent in dollars and about the same in local currency. Interesting to note: HP’s consulting revenue was down for the period ending July 31, just months before Y2K.


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