A strong market position. A significant and growing base of recurring revenues, especially printer supplies. Product and geographic diversity. Strong brand name recognition and image. A history of successful product development, well supported by R&D funding. Highly competitive and rapidly evolving technology market. Current earnings reliance on Imaging and Printing segment. The ratings on Hewlett-Packard Co. (HP) reflect the company's improved market position after its May 2002 merger with Compaq and its strong financial profile for the rating. However, these factors partially are offset by the significant level of operational execution risk inherent in the highly competitive and rapidly evolving technology market, as well as the company's predominant earnings reliance on its printing and imaging segment. Palo Alto, Calif.-based HP
