It expects the continuing technology slump to affect results until next year and is planning to cut 15,000 staff over 10% of the workforce.

For the first half of 2002 IPG had revenues of 6.9bn ($10bn) with a profit margin of 15%. It expects revenues for the second half of the year to be 6.9bn-7.2bn with 11-13% profits. Over the coming two years IPG will be the fastest growing division of HP at 10% per year, according to its estimates, with profits in the range of 11-13%.

It expects revenue growth from digital publishing, the sector that it defines its Indigo products under, as kicking in as a significant source of revenue growth in 2005.

HP has released a software development kit (SDK) for sending print jobs via the internet to HP Indigo digital presses. The HP Commercial Print Submission Manager SDK is designed to provide a way to submit short-run and variable-data jobs online. It is one of four SDKs the firm has released for internet-based printing services.

It has already introduced a remote printing service for architecture, engineering and construction markets and remote proofing software for its DesignJet 10, 20 and 50 printers.

The firm is also expanding its market by moving into speciality print markets. This move is helping it to grow its consumables revenue and includes addressing, point-of-sale and label printing.

Story by Barney Cox