HP SALES HIT SEVEN-YEAR HIGH

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HP SALES HIT SEVEN-YEAR HIGH

 user 2007-08-17 at 8:09:00 am Views: 55
  • #18524

    HP sales hit seven-year high
    Share price rises two per cent in response to latest financial results
    Aug
    2007 HP achieved a 29 per cent leap in PC sales in the third quarter,
    providing the company with its strongest financial results in seven
    years.Total revenue at HP grew 16 per cent to $25.4bn (£12.8bn), while
    net profits rose to $1.8bn (£0.9bn), a rise of $0.4bn (£0.2bn) on the
    same period last year. Notebook sales were up 54 per cent, while
    revenue from desktops grew by 12 per cent.The strong results far
    exceeded Wall Street estimates. Yesterday the company’s share value
    rose two per cent to $47.02 in after-hours trading.HP chief executive
    Mark Hurd said the results reflected growth in the company’s key
    business areas and an increased demand for HP products.’We are
    continuing to become a more efficient organisation,’ said Hurd.


    Supplies Revenue Up 9 Percent as HP Reports 3Q Results

    August 
    2007 Net revenue of $25.4 billion, up $3.5 billion year over year, or
    16% — GAAP operating profit of $2.1 billion; $0.66 earnings per share,
    up from $0.48 in the prior-year period — Non-GAAP operating profit of
    $2.3 billion; $0.71 earnings per share, up from $0.52 in the prior-year
    period.HP announced financial results for its third fiscal quarter
    ended July 31, 2007, with net revenue of $25.4 billion, representing
    growth of 16% year over year, or 12% when adjusted for the effects of
    currency.GAAP operating profit was $2.1 billion and GAAP diluted
    earnings per share (EPS) was $0.66, up from $0.48 in the prior-year
    period. Non-GAAP operating profit was $2.3 billion, with non-GAAP
    diluted EPS of $0.71 up from $0.52 in the prior-year period. Non-GAAP
    financial information excludes $134 million of adjustments on an
    after-tax basis, or $0.05 per diluted share, related primarily to
    amortization of purchased intangibles. GAAP and non-GAAP financial
    information include all stock-based compensation expense in both
    current and prior-year periods.”HP’s latest results demonstrate
    continued strength across each of our key businesses and geographies
    with our best revenue growth since 2000,” said Mark Hurd, HP chairman
    and chief executive officer. “We are executing increasingly well in
    creating demand for our innovative products and services, and we are
    continuing to become a more efficient organization.”

    Information about HP’s use of non-GAAP financial information is provided under “Use of non-GAAP financial information” below.
    During
    the quarter, on a year-over-year basis, revenue in the Americas grew
    14% to $11.1 billion, revenue in Europe, the Middle East and Africa
    grew 16% to $9.7 billion, and revenue in Asia Pacific grew 22% to $4.6
    billion. When adjusted for the effects of currency, revenue in the
    Americas grew 13%, revenue in Europe, the Middle East and Africa grew
    9%, and revenue in Asia Pacific grew 18%. Revenue from outside of the
    United States was 65%, with revenue in the BRIC countries (Brazil,
    Russia, India and China) growing 35% over the prior year in the third
    quarter and now accounting for more than 8% of revenue.

    Personal Systems Group
    Personal
    Systems Group (PSG) revenue grew 29% year over year to $8.9 billion,
    with unit shipments up 33% on a year-over-year basis. These results
    bring PSG’s year-to-date revenue growth to nearly $5 billion. Notebook
    revenue grew 54% over the prior-year period, while desktop revenue grew
    12%. Commercial client revenue grew 19% year-over-year, while Consumer
    client revenue increased 46%. Operating profit was $519 million, or
    5.8% of revenue, up from $275 million, or 4.0% of revenue, in the
    prior-year period.

    Imaging and Printing Group
    Imaging
    and Printing Group (IPG) revenue grew 8% year over year to $6.8
    billion. On a year-over-year basis, supplies revenue grew 9%,
    commercial hardware revenue grew 6% and consumer hardware revenue grew
    10%. Printer unit shipments increased 10% year over year, with consumer
    printer hardware units up 8% and commercial printer hardware units up
    17%. Momentum in key growth initiatives continued, with printer-based
    multi-function devices up 76%. Operating profit was $981 million, or
    14.5% of revenue, up from $884 million, or 14.2% of revenue, in the
    prior-year period.

    Enterprise Storage and Servers
    Enterprise
    Storage and Servers (ESS) reported revenue of $4.5 billion, up 10% over
    the prior-year period. On a year-over-year basis, industry-standard
    server revenue increased 16%, with x86 blade revenue up 81%. Storage
    revenue grew 6%, with revenue growth of 7% in external disk storage,
    including 14% in the midrange EVA line, and partially offset by a
    decline in the tape business. Business critical systems revenue
    declined 3%, with Integrity systems growth of 71% offset by declines in
    PA-RISC and Alpha. Operating profit was $464 million, or 10.2% of
    revenue, up from $296 million, or 7.2% of revenue, in the prior-year
    period.

    HP Services
    HP
    Services (HPS) revenue increased 8% year over year to $4.2 billion.
    Revenue in Technology Services grew 5% over the prior-year period,
    while Consulting and Integration revenue rose 11%, and Outsourcing
    Services revenue rose 11%. Operating profit was $430 million, or 10.3%
    of revenue, up from $364 million, or 9.4% of revenue, in the prior-year
    period.

    HP Software
    HP
    Software revenue grew 74% over the prior-year period to $554 million,
    led by strong growth from the businesses acquired in HP’s purchase of
    Mercury Interactive. On a year-over-year basis, HP OpenView grew 14%
    excluding Mercury. Operating profit was $81 million, or 14.6% of
    revenue, up from $13 million, or 4.1% of revenue, in the prior-year
    period.

    Financial Services
    HP
    Financial Services (HPFS) reported revenue of $582 million, an increase
    of 12% year over year. Financing volume and net portfolio assets
    increased 7% and 8%, respectively, over the prior-year period.
    Operating margin was 6.7% of revenue, comparable to the same period
    last year.

    Asset management
    HP
    generated $1.9 billion in cash flow from operations. Inventory ended
    the quarter at $8.0 billion, up $728 million sequentially and up $542
    million year over year. Accounts receivable increased $268 million
    sequentially and increased $2.2 billion over the prior-year period to
    $11.8 billion. Accounts payable increased $168 million sequentially and
    $978 million over the prior-year period to $11.7 billion. HP’s dividend
    payment of $0.08 per share in the second quarter resulted in cash usage
    of $209 million. HP utilized $2.5 billion of cash during the third
    quarter to repurchase approximately 55 million shares of common stock
    from the open market. HP exited the quarter with $12.5 billion in gross
    cash, which includes cash and cash equivalents of $12.5 billion,
    short-term investments of $40 million, and certain long-term
    investments of $23 million.