Blades and notebooks continue to drive HP

HP posted $28.3bn in revenue for the last quarter

HP credited strong notebook and server sales and an expanded software portfolio for yet another strong quarter.

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

HP posted strong gains in its blade server unit. Revenues from x86 blades were up 78 per cent year over year.

Sales of notebook computers continued to grow, and 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, having reported 54 per cent growth in August.

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

"2007 marked an important year for HP Software," Hurd 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 Interactive last November for $4.5bn during a difficult time for both companies. Mercury was looking to recover from a stock options debacle, while HP was in the middle of its infamous spying scandal.

Since then, HP has posted its best fiscal year ever, drawing in more than $104bn in revenues and surpassing Dell for the lead in total PC sales.