COMPUTER firm Hewlett-Packard has reported a rise in profits and smaller-than-expected fall in net revenues.

The company, which has a base in Newcastle, said quarterly revenues of £16.9bn were down one per cent from a year earlier, for the three months to January 31.

The firm, which sponsors the shirts of Tottenham Hotspur, also reported rising net incomes and has raised its profit forecast.

Hewlett Packard is the world's largest maker of personal computers, but has seen demand for its desktop computers drop in recent years.

Meg Whitman, the firm's president, said: “The company is in a stronger position today than we've been in quite some time.

“The progress we're making is reflected in growth across several areas, the growing strength of our balance sheet, and the strong support we're receiving from customers and partners.”