Peter Burrows at BusinessWeek online has been crunching the numbers at Yahoo Finance and noticed that Hewlett-Packard is neck and neck with with IBM and about to pass:
If one looks at trailing twelve months of financial reports, both companies have sold exactly $88.89 billion over the last year. And analysts’ consensus estimates are that HP will grow 5.1% in fiscal 2007, versus 4.3% for IBM. So a changing of the guard may not be far off.
He notes the proximate cause is IBM’s sale of its loss-ridden personal computer unit to Lenovo which reminds us that we’re talking revenue here.
Speaking of IBM, today’s Wall Street Journal (subscription required) has an article on the respective approaches of IBM and Microsoft to dealing with and acquiring start-up companies. Don Dodge has more on the Microsoft approach.
While its cash cache is down 7% from a year ago, Microsoft generated $369 million in interest income last quarter. That’s up 16% from a year earlier and equals 12% of its net income.
An enviable position, to be sure, except for a gung ho tech company.