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HP's Net Income Up 30 Percent: Page 2 of 3

Despite weakness in Unix servers, HP's Enterprise Systems Group, which includes both hardware and software, had revenue of $3.9 billion, 5 percent growth year over year, and net income of $108 million after posting a loss of $82 million in the year-ago quarter.

HP said Unix revenue declined 13 percent from a year earlier, reflecting intense pricing pressure. Alpha revenue declined 32 percent from a year earlier, and HP 9000 server revenue was flat.

Services revenue was up 6 percent to $3.2 billion, but profits were down to $258 million from $339 million for the year-earlier period. Fiorina said services experienced intense pricing pressure in customer support and weakness in consulting and integration--but managed services experienced 27 percent growth.

Imaging and printing had sales of $5.9 billion and net income of $968 million, compared with sales of $5.6 billion and earnings of $911 million a year earlier.

HP said it expects second-quarter revenue of $19.2 billion to $19.6 billion and earnings per share of approximately 34 cents.