HP's Q4 results quadruple despite formal SEC probe

HP published the results for its fourth quarter yesterday, reporting profits that have quadrupled.

Earnings for the period ending 31 October were $1.7 billion, compared to $416 million in the same quarter last year, while full year earnings were up seven per cent to $91.7 billion.

Sales were also boosted from $22.9 billion to $24.6 billion during the same timeframe, with revenue generated from business in Europe, the Middle East and Africa grew by seven per cent to $9.7 billion.

"We closed a strong year with solid revenue growth, margin expansion across our key businesses and excellent cash flow from operations," said Mark Hurd, HP's chairman and chief executive.

"We are well on our way to building a more competitive HP that creates further value for our shareholders."

The computer giant released its financial figures on the same day as Dell was forced to postpone its earning release due to a US Securities and Exchange Commission(SEC) investigation into accounting irregularities.

HP's buoyant results could have been overshadowed in a similar vein as the company quietly confirmed that an SEC enquiry into alleged boardroom spying has turned into a formal investigation.

The company's financial outlook for the first quarter of its 2007 financial year looks equally as healthy, with a forecast of revenue in the region of $24.1 billion to $24.3 billion.