HP defies economic slide with strong fourth quarter

HP saw a sharp increase in fourth quarter revenue and expects a profitable fiscal 2009 despite a gloomy global economic scene.

HP, the world's largest computer manufacturer, released its preliminary financial results Tuesday and is due to release full results next Monday.

(View a slideshow: What tech CEOs are saying about the economy.)

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HP saw a sharp increase in fourth quarter revenue and expects a profitable fiscal 2009 despite a gloomy global economic scene.

HP, the world's largest computer manufacturer, released its preliminary financial results Tuesday and is due to release full results next Monday.

(View a slideshow: What tech CEOs are saying about the economy.)

Fourth quarter revenue came in at $33.6 billion, a 19% year-over-year increase, or 16% after adjusting for currency fluctuations, HP said. Preliminary GAAP earnings per share were $0.84.

HP said unfavorable currency exchange rates will likely drag down its fiscal 2009 revenue by five percentage points in its first quarter and six to seven percentage points over the year. The U.S. dollar has gained strength as of late against currencies such as the euro and British pound.

Still, fiscal 2009 doesn't look to be the disaster for HP that other technology companies are expecting with lower IT spending.

HP is expecting revenue between $32 billion to $32.5 billion for its first quarter, with GAAP earnings per share between $0.80 to $0.82.

For the full fiscal 2009, HP said revenue should be between $127.5 billion to $130 billion. GAAP earnings per share should be between $3.38 to $3.53.

The IDG News Service is a Network World affiliate.