Hewlett-Packard increased its services revenue by 8% in the last financial year, despite an overall fall in net profit and revenue. Services revenue reached $9 billion (£5.5 billion) in the year to 31 October, generating an operating profit of $1.4 billion, up from $945 million the previous year.

Infrastructure technology outsourcing contributed revenue of $4.1 billion, technology services $2.5 billion, application services $1.5 billion and BPO $778 million. HP said the integration of its subsidiary EDS was ahead of plan, helping it end the year with a surge in services signings.

For the full year, HP’s net profit fell 8% to $7.6 billion, on revenue down 3% to $114.6 billion. Fourth-quarter revenue dropped 8% to $30.8 billion, with the EMEA region down 17%, the Americas down 3% and Asia-Pacific down 1%.

HP chairman and CEO Mark Hurd commented: “HP’s solid performance in services drove record profits, and the accelerated pace in signings creates strong momentum going into 2010. Our operational execution and improving cost structure generated strong quarterly and year-end results. We expect to outperform the market due to our significant scale, broad portfolio and market-leading position.”

Source: MCN Direct Newswire