[R]10:30AM New York – First quarter revenue at HP increased 13% and net income increased 38% from a year ago.[/R]

HP (HPQ: chart) reported its first fiscal quarter ended Jan. 31, 2008, with net revenue of $28.5 billion, up 13% from a year earlier and up 8% after adjusting for currency gains.

In the first quarter, operating profit was $2.6 billion and diluted earnings per share were $0.80, up from $0.55 in the prior-year period, an increase of 45%. Operating margin in the quarter increased to 9.2% from 7.3%.

Non-GAAP operating profit was $2.8 billion, with non-GAAP diluted EPS of $0.86 up from $0.65 in the prior-year period. Non-GAAP financial information excludes $158 million of adjustments on an after-tax basis, or $0.06 per diluted share, related primarily to amortization of purchased intangibles.

Net earnings in the quarter increased 38% to $2.1 billion from $1.5 billion from a year ago.

Geographic Revenue Breakdown

Revenue in the Americas grew 8% on a year-over-year basis to $11.2 billion. Revenue grew 15% in Europe, the Middle East and Africa to $12.3 billion. Revenue grew 22% in Asia Pacific to $4.9 billion.

When adjusted for the effects of currency, revenue in the Americas grew 7%, revenue in Europe, the Middle East and Africa grew 7%, and revenue in Asia Pacific grew 16%.

Revenue from outside of the United States in the first quarter was 69%, with revenue in the BRIC countries (Brazil, Russia, India and China) growing 35% over the prior-year period and accounting for 9% of total revenue.

Looking Ahead

HP estimates second quarter revenue between $27.7 billion to $27.9 billion and diluted earnings per share to be approximately $0.77 to $0.78 and non-GAAP diluted earnings per share to be between $0.83 and $0.84. Second quarter earnings estimates exclude after-tax costs of approximately $0.06 per share, related primarily to the amortization of purchased intangibles.

HP estimates fiscal year revenue between $113.5 billion and $114.0 billion and diluted earnings to be in the range of $3.26 to $3.30, and non-GAAP diluted earnings in the range of $3.50 to $3.54. Non-GAAP diluted earnings estimates exclude after-tax costs of approximately $0.24 per share, related primarily to the amortization of purchased intangibles