Technology giant Hewlett-Packard has released its quarterly earnings and there’s both good news and bad news.

First, the good news: for the first fiscal quarter ending Jan. 31, 2011, net revenue of $32.3 billion was up 4 percent from the prior-year period. Now for the bad news: HP’s revenue growth failed to meet Wall Street’s goals, a reality that “raises questions about the momentum of the company’s transformation,” according to a recent Wall Street Journal article.

"I'm pleased with our EPS and margin expansion during the quarter. Going forward, we have the opportunity to further capitalize on our customers' demands for higher value-added solutions," said Léo Apotheker, HP president and chief executive officer, in a statement. "HP has a powerful portfolio, including exciting, recently announced cloud and connectivity offerings. We are focused on leveraging these strengths to extend our leadership and accelerate growth."

Among the winners is HP’s enterprise servers, storage and networking business line whose revenues grew 22 percent year over year with a 14.7 percent operating margin. However, the company’s personal systems group revenue declined 1 percent year over year with a 6.4 percent operating margin. 

In the meantime, San Francisco Business Times reports that HP is planning to build a $100 million next-generation data center in the suburbs of Sydney, Australia. As per this report, HP has submitted plans for the construction of the data center to the New South Wales government in December, and is seeking permission for the project.

Work for the center, which will be built in Eastern Creek, about an hour by car from central Sydney, is expected to be completed by the year-end.

DatacenterDynamics estimates the total cost of building this center to run around $120 million.