FIRST QUARTER RESULTS ON HP HARDWARE - TBR COMMENTARY - Sponsored Whitepaper

As a major IT supplier to businesses, HP subsequently suffered first a slowing of growth and then three quarters of year-to-year revenue declines, from which it emerged in 4Q09. Now, businesses have resumed purchasing, apparently confident in the global economic recovery, and HP is benefiting. The company posted year-to-year revenue growth of 12.8%, assisted by about four points of favorable currency trends and strong growth across all regions. As customers replaced aging equipment, HP’s computer hardware divisions led corporate revenue growth: Personal Systems Group (PSG), which makes PCs, grew 21%, but Enterprise Storage and Servers (ESS), which makes servers, storage, and networking equipment, grew 31%. Imaging and Printing Group (IPG) grew only 8% year-to-year, yet this marked a relatively strong performance for the division.