HP's imaging and printing business again led the way, generating a quarterly profit of $907 million on revenue of $5.6 billion, up from a profit of $742 million on revenue of $5.1 billion a year ago. The company's IT services business nearly doubled, thanks largely to the Compaq acquisition. Services generated $341 million in profit on $2.96 billion in revenue, compared with $203 million in profit on $1.56 billion in revenue for the first quarter a year ago.
Strong sales of consumer PCs and handheld devices offset weakness in commercial products in HP's personal systems group, which recorded $33 million in profit on $5.1 billion in sales. The enterprise systems group continued to struggle, losing $83 million on revenue of $3.7 billion.