Hewlett-Packard (HP) has reported better-than-expected quarterly results helped by strong international sales.
HP chief executive, Mark Hurd says costs cuts have been "significant"
Net income was $2.13bn (£1.09bn) in the three months to the end of January, up 38% on the previous year.
HP was helped by strong sales outside the United States where it generates two-thirds of its revenue.
There was concern that the slowing US economy would hit computer makers and shares in HP and its rivals Dell and Apple have fallen recently.
But analysts say that HP is coping well and its shares rose 5% in after hours trading in New York.
"This positions the company well for 2008 and shows that they're able to execute even in a slowing economy." said Shannon Cross of Cross Research.
Chief Executive Mark Hurd has been credited with reviving HP since taking control in early 2005.
He's been particularly successful at reducing costs.
"Our cost savings are significant and ongoing," he said on Tuesday.