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HP Reports Fourth Quarter 2008 Results

Tags: Hewlett Packard (NYSE:HPQ)

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Press release

--Fourth quarter net revenue up 19%, or $5.3 billion, from a year earlier to $33.6 billion

--Fiscal 2008 net revenue up 13%, or $14.1 billion, to $118.4 billion

--Fourth quarter GAAP operating profit up 4% to $2.7 billion; $0.84 earnings per share, up from $0.81 a year earlier

--Fourth quarter non-GAAP operating profit up 21% to $3.4 billion; $1.03 earnings per share, up from $0.86 a year earlier

--Fourth quarter cash flow from operations of $3.3 billion; fiscal 2008 cash flow from operations of $14.6 billion, up 52% from a year earlier

--Closed EDS acquisition; integration on track

PALO ALTO, Calif., Nov 24, 2008 (BUSINESS WIRE) -- HP (NYSE:HPQ) today announced financial results for its fourth fiscal quarter ended Oct. 31, 2008, with net revenue of $33.6 billion, up 19% from a year earlier and up 16% when adjusted for the effects of currency. Excluding EDS revenue, net revenue grew 5% year over year or 2% when adjusted for the effects of currency.

In the fourth quarter, GAAP operating profit was $2.7 billion and GAAP diluted earnings per share (EPS) was $0.84, up from $0.81 in the prior-year period. Non-GAAP operating profit was $3.4 billion, with non-GAAP diluted EPS of $1.03, up from $0.86 in the prior-year period. Non-GAAP financial information excludes $482 million of adjustments on an after-tax basis, or $0.19 per diluted share, related primarily to amortization of purchased intangible assets, restructuring charges, acquisition-related charges and in-process research and development charges.

"HP capped off a strong year by delivering another solid quarter led by strength in our services segment and disciplined expense management," said Mark Hurd, HP chairman and chief executive officer. "Our global reach, broad portfolio, numerous cost initiatives and consistent execution differentiate HP in the current economic environment."

Information about HP's use of non-GAAP financial information is provided under "Use of non-GAAP financial information" below. Unless otherwise noted, all growth rates included in the narrative below reflect year-over-year comparisons.

Revenue grew 17% in the Americas, 22% in Europe, the Middle East and Africa and 14% in Asia Pacific to $14.0 billion, $14.1 billion and $5.5 billion, respectively. When adjusted for the effects of currency, revenue grew 17% in the Americas, 15% in Europe, the Middle East and Africa and 12% in Asia Pacific. Revenue from outside of the United States in the fourth quarter accounted for 68% of total revenue, with revenue in the BRIC countries (Brazil, Russia, India and China) growing 23% over the prior-year period and accounting for 9% of total revenue.