UPDATE 2-Hewlett-Packard CFO sees 'flush' budgets in U.S.

* Confident HP can increase EPS faster than revenue

* Seeing uptick in demand for printers

* Shares rise 1.4 pct (Adds quotes, background, byline)

By Gabriel Madway

SAN FRANCISCO, Dec 9 (Reuters) - Hewlett-Packard Co's (HPQ.N: 行情) finance chief said the company is looking to capitalize on "flush" enterprise budgets in the United States, as the technology giant sounded positive about demand across its business line.

CFO Cathie Lesjak said on Wednesday the company is well positioned to take advantage of the upcoming corporate IT hardware refresh cycle, particularly in the United States, as businesses replace aging machines starting next year.

She said HP's personal computer business continues to take market share and noted an improvement in HP's printer business, which struggled in 2009.

"I think that there's a sense at least within our organization that there is a bit of a budget flush going on and we want obviously to be there to take advantage of it," Lesjak said at the Barclays Global Technology Conference in San Francisco.

As a result, HP has asked some U.S. sales employees involved with servers, storage and networking not to take a scheduled year-end holiday break, an HP spokesman said, confirming news first reported by Bloomberg.

Lesjak also said the company was confident it can increase earnings per share "significantly faster" than revenue. HP reported an 11 percent rise in EPS excluding items in its most recent quarter, as revenue declined 8 percent. The company has been a focused cost-cutter as it aims to boost margins.

HP is the world's largest technology company by revenue and a bellwether for IT spending. It is the biggest PC vendor and No. 2 in technology services and servers.

Lesjak said strength continued to come in the United States and China but added there is little sign of improvement in Europe, although the market has stabilized.

GAINING SHARE

The company has been taking share in the PC market throughout the downturn, and now ranks as the top seller to U.S. businesses, according to industry trackers, passing Dell Inc (DELL.O: 行情).

Analysts say HP has been pricing its PCs aggressively. Lesjak said, "we have been working on our cost structure, which allows us to be more competitive in the market without sacrificing margins."

HP's printer business, which provides it with steady revenue from recurring sales of ink cartridges, has had a difficult year, but Lesjak said the business is improving.

"We are definitely seeing an uptick in demand in printers." She said HP has already worked through shortages of ink cartridges and expects to do the same for laser printers by Jan. 31, 2010, the end of its fiscal first quarter.

HP has agreed to pay $3 billion to acquire 3Com Corp COMS.O as it pushes further into network equipment. Lesjak said the deal is expected to close early in the fiscal second quarter.

The shares of Palo Alto, California-based HP rose 1.4 percent to $49.64 in midday trading on the New York Stock Exchange. (Editing by Andre Grenon and Steve Orlofsky)