Sales 'better than expected' at HP

Sales of hardware by Hewlett-Packard were better than expected over the festive period, it has emerged.

An improvement in the sale of HP's corporate back-end systems between November and January signalled that the technology industry is emerging from the recession.

Demand for personal computers at HP also increased during this period, beating Wall Street predictions, as consumers looked to purchase Microsoft's new Windows 7 software.

However, the uptake has not been as strong among businesses, with HP's chief financial officer, Cathie Lesjak, forecasting that corporations will not "refresh" their computer systems until the second half of the year.

Meanwhile, expectation of further recovery and an "accelerating market momentum" led to HP boosting its financial outlook for the year ahead.

Jayson Noland, an analyst with Robert W. Baird & Co said: "It's better than expected. The hardware side of their business bounced back really nicely, especially the PC and server divisions."

Copyright © Press Association 2010