Hewlett-Packard Co.'s PC business and software sales from its Mercury Interactive acquisition helped produce net profit of US$1.8 billion, for a 29 percent increase, with a 16 percent boost in revenue in the fiscal third quarter, according to financial results released Thursday.
HP's (NYSE:HPQ) profit was $0.66 per share, on revenue of $25.4 billion in the three months that ended July 31, up from $0.48 a share, on revenue of $21.9 billion in the same quarter last year. Profit in that quarter was $1.4 billion.
Revenue from its Personal Systems Group, primarily desktop and notebook computers sold to consumers, grew 29 percent to $8.9 billion. Revenue from the HP Software group boosted revenue 74 percent to $554 million, driven by sales from its $4.5 billion acquisition of Mercury Interactive Inc. in 2006. Mercury was not yet part of HP in last year's third quarter.
HP is growing its software portfolio further with the acquisition, announced July 23, of Opsware Inc. for $1.6 billion. Expected to be completed in the current quarter, the deal will be HP's third largest acquisition behind Mercury and the $19 billion acquisition of Compaq Computer Corp. in 2002.
The third quarter results matched HP's second quarter performance of net income of US$1.8 billion, or $0.65 a share, on revenue of $25.5 billion. The results also matched the consensus of analysts surveyed by Thomson Financial, who forecast $0.66 a share profit on revenue of $24.09 billion.