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HP Reports Fourth Quarter and Full Year 2011 Results

HP today announced financial results for its fourth quarter and full fiscal year ended Oct. 31, 2011:

 

- Fiscal 2011 non-GAAP net revenue of $127.4 billion, non-GAAP diluted earnings per share of $4.88 and free cash flow of $9.1 billion grew 1%, 7% and 8%, respectively, over the prior year

- Fourth quarter non-GAAP net revenue of $32.3 billion, non-GAAP diluted earnings per share of $1.17 and free cash flow of $1.2 billion were down 3%, 12% and 43%, respectively, from the prior-year quarter

 

Quote from CEO Meg Whitman:

“HP has a great opportunity to build on our strong hardware, software, and services franchises with leading market positions, customer relationships, and intellectual property. We need to get back to the business fundamentals in fiscal 2012, including making prudent investments in the business and driving more consistent execution.”

 

Quote from CFO Cathie Lesjak:

“While FY11 proved to be a challenging year, we grew non-GAAP EPS 7% and generated $12.6 billion in cash flow from operations.”

 

For more information, read the rest of today’s announcement at the HP Newsroom or follow @hpnews on Twitter.

 

We will update this post later today with additional information as it comes available.

 

Use of non-GAAP financial information

To supplement HP’s consolidated condensed financial statements presented on a GAAP basis, HP provides non-GAAP net revenue, non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted earnings per share, gross cash and free cash flow. HP also provides forecasts of non-GAAP diluted earnings per share. A reconciliation of the adjustments to GAAP results for this quarter and prior periods is included in the tables below. In addition, an explanation of the ways in which HP management uses these non-GAAP measures to evaluate its business, the substance behind HP management’s decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which HP management compensates for those limitations, and the substantive reasons why HP management believes that these non-GAAP measures provide useful information to investors is included under “Use of Non-GAAP Financial Measures” after the tables below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for revenue, operating profit, operating margin, net earnings, diluted earnings per share, cash and cash equivalents or cash flow from operations prepared in accordance with GAAP.

 

Forward-looking statements

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of HP may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any projections of revenue, margins, expenses, earnings, tax provisions, cash flows, benefit obligations, share repurchases, currency exchange rates, the impact of acquisitions or other financial items; any statements of the plans, strategies and objectives of management for future operations, including the execution of cost reduction programs and restructuring and integration plans; any statements concerning the expected development, performance or market share relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the impact of macroeconomic and geopolitical trends and events; the competitive pressures faced by HP’s businesses; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its suppliers, customers and partners; the protection of HP’s intellectual property assets, including intellectual property licensed from third parties; integration and other risks associated with business combination and investment transactions; the hiring and retention of key employees; assumptions related to pension and other post-retirement costs; expectations and assumptions relating to the execution and timing of restructuring and integration plans; the possibility that the expected benefits of business combination transactions may not materialize as expected; the resolution of pending investigations, claims and disputes; and other risks that are described in HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2010 and HP’s other filings with the Securities and Exchange Commission, including HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2011. As in prior periods, the financial information set forth in this release, including tax-related items, reflects estimates based on information available at this time. While HP believes these estimates to be meaningful, these amounts could differ materially from actual reported amounts in HP’s Form 10-K for the fiscal year ended October 31, 2011. In particular, determining HP’s actual tax balances and provisions as of October 31, 2011 requires extensive internal and external review of tax data (including consolidating and reviewing the tax provisions of numerous domestic and foreign entities), which is being completed in the ordinary course of preparing HP’s Form 10-K. HP assumes no obligation and does not intend to update these forward-looking statements.

Labels: Finance

HP reports first quarter 2011 results

HP today announced financial results for its first fiscal quarter. Net revenue of $32.3 billion was up 4% from the prior-year period.

 

Highlights:

- First quarter GAAP diluted earnings per share are up 26% year over year with non-GAAP diluted earnings per share up 27% and cash flow from operations up 28%

- First quarter gross margins are up 1.5 percentage points year over year to 24.4%

- There was continued strength in commercial hardware, with Enterprise Servers, Storage and Networking revenue up 22% year over year with growth in commercial PC Clients and Printers of 11% and 13%, respectively

- HP is raising full year GAAP diluted earnings per share outlook to $4.46 to $4.54 and non-GAAP diluted earnings per share outlook to $5.20 to $5.28.

 

Read the full press release and financials by clicking here.

 

Quote from CEO Leo Apotheker

“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.  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.”


Updates

We will update this post throughout the day with transcripts, presentations, and quotes relating to HP’s first quarter earnings report.  Visit HP Investor Relations for more information or follow @hpnews on Twitter and Stocktwits.

 

Request-HPQ 1Q11 Earnings Final


 

Use of non-GAAP financial information

To supplement HP’s consolidated condensed financial statements presented on a GAAP basis, HP provides non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted earnings per share and gross cash. HP also provides forecasts of non-GAAP diluted earnings per share. A reconciliation of the adjustments to GAAP results for this quarter and prior periods is included in the tables below. In addition, an explanation of the ways in which HP management uses these non-GAAP measures to evaluate its business, the substance behind HP management’s decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which HP management compensates for those limitations, and the substantive reasons why HP management believes that these non-GAAP measures provide useful information to investors is included under “Use of Non-GAAP Financial Measures” after the tables below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for operating profit, operating margin, net earnings, diluted earnings per share, or cash and cash equivalents prepared in accordance with GAAP.

 

Forward-looking statements

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of HP may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any projections of revenue, margins, expenses, earnings, tax provisions, cash flows, benefit obligations, share repurchases, currency exchange rates, the impact of acquisitions or other financial items; any statements of the plans, strategies and objectives of management for future operations, including the execution of cost reduction programs and restructuring plans; any statements concerning the expected development, performance or market share relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the impact of macroeconomic and geopolitical trends and events; the competitive pressures faced by HP’s businesses; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its suppliers, customers and partners; the protection of HP’s intellectual property assets, including intellectual property licensed from third parties; integration and other risks associated with business combination and investment transactions; the hiring and retention of key employees; assumptions related to pension and other post-retirement costs; expectations and assumptions relating to the execution and timing of cost reduction programs and restructuring plans; the resolution of pending investigations, claims and disputes; and other risks that are described in HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2010 and HP’s other filings with the Securities and Exchange Commission. As in prior periods, the financial information set forth in this release, including tax-related items, reflects estimates based on information available at this time. While HP believes these estimates to be meaningful, these amounts could differ materially from actual reported amounts in HP’s Form 10-Q for the quarter ended January 31, 2011. In particular, determining HP’s actual tax balances and provisions as of January 31, 2011 requires extensive internal and external review of tax data (including consolidating and reviewing the tax provisions of numerous domestic and foreign entities), which is being completed in the ordinary course of preparing HP’s Form 10-Q. HP assumes no obligation and does not intend to update these forward-looking statements.

Labels: Finance

HP Q1 earnings quick reference guide for Tuesday, February 22, 2011

HP (NYSE: HPQ) will present its first quarter earnings today, February 22, 2011, after the market closes.  We will post links to the news release, financials, slide presentations, and other information as it becomes available here at Data Central and on Twitter/Stocktwits at @hpnews.

 

You’ll also be able to follow the news on our investor relations website, the HP.com newsroomBusiness Wire, and Facebook.

 

Related resources:

Webcast of 1Q11 analyst relations call, 2pm PT, Tuesday, February 22.

All HPQ SEC filings

More upcoming investor meetings (including webcasts)

HPQ 2010 Annual Report (including a "Letter to Stockholders" from CEO Leo Apotheker)

 

Forward-looking statements

Comments made during today's earnings report may contain forward-looking statements that are subject to risks and uncertainties. Please refer to HP's SEC reports for discussion of those risks.

Labels: Finance

Out with the Old, in with the New: Best practices for Disposing of Outdated IT Equipment

pc disposition

(Posted by Mike Cuno, HP Financial Services)

 

As businesses replace outdated IT equipment, the task of responsibly disposing of it can be daunting -- but it doesn’t have to be.

 

All too often, companies let older technology pile up in a closet or warehouse. But, one man’s trash is another man’s treasure: much older IT equipment can be refurbished and remarketed. By employing the expertise of a lifecycle asset management provider, companies can find value in equipment they no longer need.

 

Out of sight, out of mind? Not in this case

 

Old IT equipment can’t just be tossed into a dumpster – it often contains heavy metals and other potentially hazardous substances. If technology is disposed of carelessly or irresponsibly, the equipment can not only endanger the environment, but also lead to litigation and threaten an organization’s reputation.

 

What’s more, high-tech devices – computers, servers and storage units – are filled with proprietary data, information about customers and employees and even intellectual property. If this information gets into the wrong hands, it can be bad news. That makes data wiping an important part of the disposition process.

 

HP’s approach


HP Financial Services, the company’s leasing and lifecycle asset management division, is responsible for managing the disposition of IT equipment for HP around the world. In 2009, HP Financial Services managed more than 1.3 million units in secondary markets, including enough notebook PCs to cover more than four football fields – plus end zones.

 

HP was recently named a “Leader” in Gartner’s North American Information Technology Asset Disposition (ITAD) Magic Quadrant. Additionally, IDC has recognized HP as a certified IT Asset Disposal vendor, noting that clients can have confidence in the company’s ability to safely and securely decommission IT assets they no longer need ­– whether they’re from HP or any other manufacturer.

 

To learn more, check out this whitepaper or visit www.hp.com/hpfinancialservices.

Labels: Finance

HP Securities Analyst Meeting: Quick reference guide

Beginning at 1pm PT tomorrow, senior HP executives will meet with financial analysts in San Francisco to talk about the company’s strategy and technology.

 

This year, we’re happy to share that the entire meeting will be video broadcast live online.  This provides an excellent opportunity for anyone to learn about HP, as the event will feature detailed presentations and Q&A from some of the smartest business thinkers and technologists in the world.

 

We’ll be supplementing the live feed with updates (including a live blog, photos, and even more video and presentations) throughout the day here on Data Central and on Twitter at @hpnews.

 

Helpful resources

Live video feed, beginning at 1pm PT: www.hp.com/investor/sam2010

Twitter streams: @hpnews, $HPQ, #HPSAM

All HP SEC Filings

CFO and interim CEO Cathie Lesjak’s remarks at Citi Technology Conference, September 8, 2010

HP 3Q10 earnings results, August 19, 2010

 

Meeting agenda, September 28, 2010 (all times Pacific)

12:00 - 1:00  Innovation Showcase
1:00 - 1:10  Welcome
1:10 - 4:45  Executive Presentations 
4:45 - 5:20  Q&A
5:20 - 5:30  Wrap-up   
5:30 - 7:00  Reception

 

Video clip from last year's meeting

Dave Donatelli talks about "economies of innovation" and how HP's supply chain impacts R&D (October 2009)

 

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