HP profits leap despite spend warning

Hewlett-Packard has posted a huge increase in profits despite a nine percent decline in revenues.

The company turned in a net profit of $252 million, which is up on the $47 million in the equivalent quarter last year.

This is the company's last financial quarter before the proposed merger with Compaq.

The company pointed to its cost cutting measures and strong printer sales for the positive results.

However, it also warned that it doesn't expect to see a true improvement in IT spend until next year.