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Chief financial officer Cathie Lesjak told the Bank of America investment conference in San Francisco she was confident that HP's personal computer business could meet its operating margin target of 5% to 5.5% in fiscal 2009.

She also went on to reiterate the company's previous forecast of a net profit of 95 to 97 cents per share on revenue of around $30.2 billion to $30.3

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billion for the current quarter.

Speaking of the prospects for cutting costs through its recent acquisition of EDS, Lesjak said: "We are feeling very confident about this transaction."

Lesjak also said the company will continue to repurchase shares of its own stock, but at reduced levels from the $11 billion it bought back last year, because the company can generate profit growth elsewhere.

"I don't think it is going to be necessary to get good earnings per share expansion. We're not going to have to do a significant share program, at least in the next 12 to 15 months," she said.

"We will be active in our shares but not at the same pace."

The comments mark a start contrast with rival Dell, which predicted further softening in global technology demand causing its stock to tumble 10%.