A strong market position; A significant base of recurring revenues, driven by printer supplies and services; Product and geographic diversity; Strong brand-name recognition; and A history of successful product development, well supported by R&D funding. Volatile, rapidly evolving technology markets; Highly competitive industry conditions, which will constrain profitability improvements; and Although the mix of earnings is improving, the company still has a significant earnings reliance on the Imaging and Printing segment. The ratings on Palo Alto, Cal.-based Hewlett-Packard Co. (HP) reflect its satisfactory business profile and minimal financial risk. These factors partly are offset by the significant level of operational execution risk inherent in the rapidly evolving technology market, and highly competitive industry conditions, which likely will constrain additional profitability
