Blades and notebooks continue to drive HP

Blades and notebooks continue to drive HP

Software also credited for strong quarter

HP credited strong notebook and server sales as well as its expanded software portfolio for yet another strong quarter.

The company posted $28.3bn in revenue, a 15 per cent increase from the same quarter a year ago.

Among the strongest areas in which HP posted gains was its blade server unit. Revenues from x86 blades were up 78 per cent over one year ago.

Sales of notebook computers continued to be strong for HP. The company reported a 49 per cent growth in revenue from last year.

This is the second consecutive quarter in which notebook sales have boosted HP's numbers. In August, the company reported a 54 per cent growth.

While hardware sales were strong, chief executive Mark Hurd claimed that HP's software business was the real star of the report. Profits from HP software rocketed from $60m last year to $177m this quarter.

"2007 marked an important year for HP Software," Hurd told said in a conference call with reporters and analysts.

"I am particularly pleased with the success of Mercury, and the integration has gone well."

HP officially acquired Mercury last November for $4.5bn. Both companies were coming off of difficult times. Mercury was looking to cover from a stock options scandal, while HP was in the middle of its infamous spying scandal.

Since then, the company has proceeded to post its best fiscal year ever, drawing in more than $104b in revenues and surpassing rival Dell for the lead in total PC sales.