By Chris Nicholls

PALO ALTO, CALIFORNIA: HP has released its second quarter results for 2008, with operating margin passing the 10 per cent mark.

Second quarter revenue rose 11 per cent to US$28.3 billion, up from US$25.5 billion last year, while non-GAAP (Generally Accepted Accounting Principles) margin rose 22 per cent to US$2.8 billion.

“HP turned in another strong quarter, supported by improvement across our businesses. With 70 percent of revenue now coming from outside the U.S., we benefited from robust demand in emerging economies," said HP chairman and chief executive officer, Mark Hurd.

Personal computer sales rose 16 per cent to US$10.1 billion on a 21 per cent increase in unit shipments. While price drops have slashed laptop prices in recent times, HP said revenue grew by 31 per cent. Total operating profit for the sector grew 5.4 per cent to US$544 million. The figures were up US$127 million on last year.

The imaging and printing business only grew by six per cent, to US$7.6 billion, while supplies sales rose eight per cent. However, in a possible sign of stress in the competitive home printer market, HP said consumer hardware revenue declined three per cent. Operating profit also stayed static at US$1.2 billion, mirroring last year’s result. Percentage of revenue dropped by 10 basis points to 16.2 per cent.

Second quarter revenue rose 11 per cent to US$28.3 billion, up from US$25.5 billion last year, while non-GAAP (Generally Accepted Accounting Principles) margin rose 22 per cent to US$2.8 billion.

“HP turned in another strong quarter, supported by improvement across our businesses. With 70 percent of revenue now coming from outside the U.S., we benefited from robust demand in emerging economies," said HP chairman and chief executive officer, Mark Hurd.

Personal computer sales rose 16 per cent to US$10.1 billion on a 21 per cent increase in unit shipments. While price drops have slashed laptop prices in recent times, HP said revenue grew by 31 per cent. Total operating profit for the sector grew 5.4 per cent to US$544 million. The figures were up US$127 million on last year.

The imaging and printing business only grew by six per cent, to US$7.6 billion, while supplies sales rose eight per cent. However, in a possible sign of stress in the competitive home printer market, HP said consumer hardware revenue declined three per cent. Operating profit also stayed static at US$1.2 billion, mirroring last year’s result. Percentage of revenue dropped by 10 basis points to 16.2 per cent.

HP maintained its forecasts, with Q3 revenue expected to rise fall slightly on Q2 down to US$27.3 to 27.4 billion.