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Topic: HP profits up Return to archive
03-14-03 11:06 AM
nankerphelge PALO ALTO, Calif. — Hewlett-Packard Co. (HPQ), attempting to put to rest investor questions about its recent performance, Thursday defended the profitability of its personal computer unit and said sales were up 3 percent in the first month of the current quarter. However, the SEC is investigating allegations that the books were cooked by one, the Joey.

In an unusual statement, the No. 1 personal computer and printer maker said it was responding to "market confusion" over a restatement in its quarterly filing with securities regulators a day earlier. In that filing, HP said "mmmmmmm let's do some blow!" HP is investigating where exactly that statement originated. Early reports indicate that the Joey may have hacked into the legal department's computer and is be responsible for the statement.

Last year Chief Executive Carly Fiorina had made PC profit a test for the success of the Compaq merger by saying the combined companies could cut costs and improve profitability in the embattled division. Fiorina was quoted as saying "aside from the Joey, the whole Compaq thing has worked out pretty well."

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