Hewlett Packard (HP) announced strong quarterly results on Monday, primarily because of greater international exposure and revenues that offset any declines in the U.S.
Moreover, and unlike other corporations we've written about here, HP doesn't seem to be feeling the credit crunch or its fallout on financial institutions too much. As noted on their recent F4Q'07 conference call:
Mark V. Hurd, Chairman of the Board, CEO and President, HP
We have limited exposure to the financial services market. I won’t give you a precise number but it’s not a big number.
Now, within that 'not a big number', we saw really no material weakness in financial services and again, we’re largely under-penetrated in that market so it’s -- big markets for us inside financial services are sub-segments like stock exchanges, which even in this market are actually doing pretty well.
And later on during the call:
Catherine A. Lesjak, HP Executive VP and CFO
[On] the topic of receivables, I think you should never walk away feeling that we have any concern about our ability to collect receivables. We don’t see any degradation in credit quality, so our receivables move out with a conscious decision and a reflection of the enterprise growth that we are getting and we are very comfortable that we’ll collect the receivables and generate the cash.