US computer giant Hewlett-Packard Co. opened its first research and development center on the Chinese mainland yesterday, Eastday.com reported Thursday.
The China Software Solutions Center in the Pudong Jinqiao Export Processing Zone of Shanghai's Pudong District will develop software products for Asia-Pacific client companies in the telecommunications, financial and manufacturing fields.
Also targeted will be power generation and other emerging market needs, computer use in government, and security systems, Hewlett said in introducing the center.
The facility will employ about 200 technicians by year's end and 2,000 in five years, according to the company.
"Shanghai's good investment climate and reasonable operation cost and the government's commitment to promoting the software industry persuaded us to set up the R&D center here," the center's General Manager K.Y. Chan said.
Meanwhile, in its last quarter before its merger with Compaq Computer Corp., Hewlett reported sharply higher earnings, in line with Wall Street expectations, though sales fell short.
Releasing financial results for its second quarter, which ended on April 30, the company said on Tuesday that net income was US$252 million, or 13 US cents per share, compared with US$47 million, or 2 US cents per share, in the year-ago quarter.
Revenue dropped 9 percent to US$10.6 billion from US$11.7 billion.
Excluding acquisition-related and other one-time charges, Hewlett said quarterly earnings were US$498 million, or 25 US cents per share, up from US$336 million, or 17 US cents per share, a year ago.
Analysts were expecting per-share earnings excluding charges of exactly that amount but revenue of US$11.1 billion.
Hewlett said aggressive cost cutting helped it meet earnings targets, but revenue suffered from depressed corporate spending on technology.
"While a muted recovery in the second half is still possible, we are not counting on a meaningful improvement in IT spending until 2003," Chief Executive Carly Fiorina said.
Still, the quarter's relatively good results will allow Hewlett to pay employee bonuses for the first time in 18 months, Fiorina added.
(Xinhua News Agency May 16, 2002)
