PALO ALTO, CA -- H-P reported fourth-quarter net income of $1.7 billion, up fourfold from last year, on a sales jump of 7% to $24.6 billion. Demand was strong for PCs, printers, the company said.

The news was tempered by revelations that the Securities and Exchange Commission has launched a formal inquiry into the company's "pretexting" investigation, in which members of the H-P board reportedly authorized the gathering of information on other board members and company employees. It was later revealed that illegal means were used to gain the information.