2:03pm -- we're ready to go. HP's VP of IR (say that ten times) is going through the standard disclaimer stuff...

2:06pm -- some highlights here: sales from PSG (Personal Systems Group) grew 24% year-over-year to $8.7 billion, Printing and Imaging revenue grew 6% to $7.2 billion and Enterprise Storage and Server revenue grew 8% to $4.6 billion.

2:08pm -- a 13% year-over-year revenue growth rate (about $3 billion) was had for HP's Q2, the biggest bump since the year 2000. Not bad, eh?

2:11pm -- HP Financial services reported $550 million in revenue for the quarter, and HP's asset management area generated $4.2 billion in cash flow.

2:13pm -- CEO Hurd is expecting Q3 revenue in the range of $23.7 to $23.9 billion, with EPS of $0.61 to $0.63. As Hurd reads all these results, he is rather strong in his enunciations. He's quite animated in his language and explanations. Wow -- a CEO who gets excited while reading from a script. He's very entertaining to listen to.

2:16pm -- HP's Services group reported $4.1 billion in Q2 revenue (3% increase YoY) and HP's Software group reported $523 million for Q2, a growth rate of 58% (that is quite high, yes?)

2:17pm -- just a reminder -- if you want to see the full details of HP's Q2 financial results (all operating units), see this PDF.

2:19pm -- Hurd is wrapping up his opening comments by stating that HP is still transforming itself, and this job is not done yet. He sounds remarkably self-assured here. Michael Dell came back to head his company at just the right time, since competing against Hurd's HP is going to be no easy task.

2:21pm -- Hurd turns the call over to HP's CFO, who starts going over the fine minutaie of HP's Q2 results along with all the required expense information, stock-based compensation information and other related financials.

2:23pm -- HP employees (3,000) will be leaving based on the prior-announced defined benefit plan changes HP announced a while back, as the company continues restructuring its workforce.

2:28pm -- remarks are completed and the floor is being opened to analyst and investor Q&A. So, with that, here we go:

2:29pm -- first question: how can you separate the mix shift in your gross margin rate? This question has to do with which products (specifically) contribute the most to gross margin. Kathy (CFO) answers by not really directly answering the question, but then Hurd intercedes in that it's kind of hard to define each segment into how it contributes to margin.

2:33pm -- second question: how is HP's printing and imaging division contributing to expected growth? Hurd answers in that this division can contribute differently based on all the product mixes and even the geographic distribution of these products?

2:35pm -- next question: really good cash flow for the quarter: how is HP tracking towards its goal of $7.9 billion for 2007? Hurd answers: HP has no change right now on its goal for 2007 net cash flow and how HP may change its mind in terms of share buybacks and possible acquisitions. In other words, HP is not changing anything from prior statements.

2:37pm -- next question: how is 2008 shaping up in terms of expectations at this time? Hurd says that he thinks about all the next three years, but he won't give guidance on 2008 at this time (no direct answer given). This is not surprising -- analysts always want guidance for the 18-24 month period ahead, but this CEO's not biting.

2:39pm -- next question: is HP thinking about Dell's potential retail entry (in terms of retail shelf space)? Hurd answers by saying that HP already competes for shelf space, regardless of what Dell may do. He does not sound scared at all.

2:41pm -- next question: HP bucked the trend on U.S. PC sales -- how did it do this when the competition saw losses? Hurd answers by saying the HP grew in the U.S. but was not surprised at all, as U.S. results were what was expected (don't get too excited or think down on its actual U.S. results). Man, this guy sounds confident.

2:44pm -- next question: where is Q3 guidance coming from? Overall PC growth or something else? Hurd says that normal seasonality will make PSG Q3 revenue drop, which is to be expected.

2:47pm -- next question: is HP planning on becoming more aggressive in the enterprise storage arena (using an acquisition)? Hurd: HP's keen interest is not acquiring anything just to get sales -- it would have to add value beyond where HP's storage business is now. He also laments that this analyst tried to get in two questions. Heh.

2:50pm -- next question: HP is not done transforming the company: what color can be given to those efforts that are expected to last until 2009. Hurd: we're still working on it, and from 2005 to now, efforts have been made on the long-term to get HP's overhead costs in line (and shrinking), but that's only one piece. Hurd sounds very assured here and gives some great color on how he's managing costs from people to Depreciation and Amortization and more. Great answer here -- a workhorse answer.

2:54pm -- last question: On Michael Dell's comments about entering the distribution channel in the coming quarters -- what does HP have to say about this. Hurd: I have no comments on this -- as Dell will do what it needs to do to grow its business and HP will do what it needs to in order to grow its business. He does not sound threatened at all by Dell, although he most likely is. Still, Hurd sounds very confident in HP's abilities.

2:57pm -- call is concluded. From this call, I sense that HP is going for the jugular in every business segment it operates, even while undergoing some radical internal transformations. Is this former CEO Carly Fiorina's doing? Highly doubtful -- this is all about Hurd's drive for excellence from the way the man carries himself.