Palo Alto (CA) - Hewlett-Packard today presented its fiscal 2006 Q4 and annual earnings result. For the first time in its history, the company reported annual revenues of more than $90 billion and is on track to become larger than its rival IBM, at least in terms of sales.
Mark Hurd's Hewlett-Packard delivered yet another strong quarter with revenues that climbed 7% year over year from $22.9 billion to $24.6 billion. GAAP adjusted net profit surged from $232 million in fiscal Q4 2005 to $1.7 billion in the most recent quarter. Non-GAAP income jumped 27% from $1.5 billion to $1.9 billion.
"We closed a strong year with solid revenue growth, margin expansion across our key businesses and excellent cash flow from operations," said Hurd, HP chairman and chief executive officer, said in a statement. Revenues for the whole year were $91.7 billion, about 6% more than in 2005. GAAP profit was reported at $6.6 billion. The year generated a cash flow of $11.4 billion for the company. HP reported cash reserves of about $16.4 billion.
The firm's growth has brought HP in a position to compete with the annual revenue result of its rival IBM. Big Blue, which will close its fiscal Q4 on December 31, reported sales of $65.1 billion for the first nine months of this year.
HP's PC business remains its primary revenue source. The Personal Systems Group (PSG) revenue grew 10% year-over-year to $7.8 billion and achieved an operating profit of $336 million. Imaging and Printing Group (IPG) revenue grew 7% year-over-year to $7.3 billion with profits of $1.1 billion.
The Enterprise Storage and Servers (ESS) division reported revenue of $4.7 billion, up 4% over the prior year period, and an operating profit of $502 million. The services division increased its sales by 5% to $4.1 billion and generated operating profits of $505 million. Software sales came in at $349 million of sales and an operating profit of $60 million.