Hewlett-Packard posts a 14% earnings rise, but investors aren't impressed

Hewlett Packard (HPQ), the Silicon Valley pioneer, reported a 14% jump in profit Monday night, thanks to cost-cutting measures that more than offset an 8% reduction in revenue. The results weren't a surprise: HP provided guidance earlier this month, when it announced plans to acquire 3Com, the networking giant.

"We believe that HP will outperform the market," HP CEO Mark Hurd said in an upbeat appearance on CNBC. "Spending will continue to be prudent in 2010, but it will be better than 2009."

Despite the profit growth, investors weren't that impressed. HP shares were trading down over half a percent late Monday in after-hours trading.