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Thu 17 Aug 2000 04:00 AM

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Hewlett-Packard beats Wall Street estimates for Q3

Strong PC and laser printer sales delivered major boost to company's bottom line said CEO Carly Fiorina.

Hewlett-Packard reported a 37% increase in profits and a 15% boost in revenue for its third quarter, ended July 31. It beat Wall Street earnings estimates, to boot.

Adjusted net profits for the quarter were $1.05 billion, or 97 cents per share. According to First Call/Thomson Financial, the results beat profit forecasts by 12 cents.

Net revenue rose to $11.8 billion, compared with the $10.8 billion reported for the same quarter last year.

In a related note, the company took the opportunity during its earnings report Wednesday to reveal a two-for-one stock split.

Significant Growth

"We saw solid, strong performances across all businesses, across all the regions of the world," HP CEO and president Carly Fiorina says.

Maybe so, but she credited the strong profits to significant growth in the PC and laser-printer sectors.

"We are the fastest-growing PC company in the world," Fiorina says. She adds that HP would exit less-profitable businesses, including its stake in a joint venture with Ericsson, and sever its ties with Verifone.

Things do look rosy for HP, says Cowen & Co. analyst Richard Chu. But, he cautions, "the results are strong, though not as big when including adjustments to tax rates and one-time gains."

Profits are closer to 89 cents per share without the adjustments.

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