Hewlett Packard (HP) said that it remains cautious about market conditions, despite beating Wall Street expectations with its first-quarter results.
Strong sales in PCs, printers and outsourcing services led to a net profit of $484m (£339m) for the quarter ended 31 January, compared to $141m (£98.8m) for the same period last year.
First-quarter revenue was $11.4bn (£8bn), compared to $12.4bn (£8.7bn) last year, and the company said it reduced inventory by $746m (£522.6m) and generated $1.6bn (£1.1bn) in cash flow during the quarter.
Chief executive Carly Fiorina maintained that the results demonstrated the viability of the company's business plan.
"Our first-quarter results demonstrate HP's continued ability to stay focused on customers and effectively execute our business plan regardless of market conditions," she said.
But Fiorina warned that the market will remain difficult with no economic recovery predicted before the second half of 2002. Corporate IT spending also remained sluggish, she said.
The results will be a boost to Fiorina as she steps up the campaign to convince shareholders to go with the $22.6bn acquisition of Compaq ahead of the vote next month.
But founding family member Walter Hewlett, who is opposed to the deal, pointed out that the results demonstrate that HP does not need Compaq.
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