HP (NYSE: HPQ) will present its third quarter earnings results tomorrow, August 18, 2011, after the market closes. We will post links to the news release, financials, and other information as it becomes available here at Data Central and on Twitter/Stocktwits at @hpnews.
HP will also hold a live audio webcast of its conference call to review its financial results. The call is scheduled for Thursday, Aug. 18 at 5 p.m. ET/2 p.m. PT and will be available at http://www.hp.com/investor/2011Q3webcast.
HP on SlideShare
HP today announced financial results for its second fiscal quarter ended April 30, 2011.
Net revenue of $31.6 billion was up 3% from the prior-year period as reported and up 1% when adjusted for the effects of currency.
Read the full press release and financials by clicking here.
Quote from CEO Leo Apotheker
"HP executed well and delivered a solid quarter. Our enterprise strategy, with services at its core, is focused on higher value-added solutions. Today we are accelerating our efforts to align our services business model to our long-term strategy to deliver unprecedented value to our customers and a better return for our shareholders."
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.
Earlier this afternoon, HP CFO Cathie Lesjak was interviewed by financial analyst Benjamin Reitzes at the Barclays Global Technology Conference in San Francisco. Two highlights from the conversation included her comments on the networking business and a unique insight on the software assets HP acquired in recent deals for companies like 3COM, LeftHand, and IBRIX.
Growth and acquisition strategies
Responding to a question about future acquisitions, Cathie looked back, saying “If you look at our past acquisitions, you may not think about them the way I think about them, but I think about 3PAR, 3Com, LeftHand, IBRIX as basically being software acquisitions.”
Sharing more perspective, she added, “I know that the hardware team is part of those solutions, but it was industry-standard hardware. So when we evaluated [a deal], we didn't evaluate it on the hardware piece, we evaluated it on the software, and the intellectual property that we were going to get in those assets.”
Given that view, she reinforced that HP would continue to balance organic (i.e. home-grown innovations, like StoreOnce) and inorganic growth, and that future deals would share similarly “software-oriented” characteristics.
Rietzes also drew attention to recent performance from HP’s Enterprise Business, which he said “beat all our estimates.” He asked Cathie point blank, “What’s going on?”
“Networking is absolutely critical,” responded Lesjak. She characterized the business as a “home run,” because, in addition to giving customers choice and allowing HP the opportunity to gain market share, gross profit margins in networking are "better than double the HP corporate average."
“Our 3COM acquisition is ahead of plan on the top line as well as the bottom line,” she said. When HP disclosed fourth quarter earnings earlier this month, HP Networking (which includes 3Com) reported a 227% increase in revenue.
CEO Apotheker at the helm
The interview also included a few comments about HP’s new CEO Léo Apotheker. Reitzes wanted to know, “what it’s been like since Léo took the helm?”
"He's been out doing pretty much exactly what he said he was going to do: talking to our customers, our partners, and our employees," Cathie said. "He's got both the operational focus, as well as a deep interest and desire to basically invest in the technology and drive HP for the very long term."
Cathie's comments may contain forward-looking statements that are subject to risks and uncertainties. Please refer to HP's SEC reports for discussion of those risks.
HP senior management spent about an hour discussing the technology business and the company’s financial results this afternoon.
CEO Léo Apotheker’s initial observations about HP:
[on customers] The great majority are telling me that they want to do more business with HP… But I am also hearing that we need to make it easier for customers to work with HP…
[on employees] “HP employees are a highly competitive group who want to win. They also want to be rewarded for their performance. This is consistent across the globe. I believe in a performance-driven culture, and our employees have been performing. Therefore, I am pleased that we will be re-instituting salary increases in FY11 as part of our normal annual review process. It’s well deserved…
[on technology] As Cathie described to you at the Securities Analyst Meeting in September, we have been increasing our investments in R&D. In the fourth quarter, R&D was up more than revenue growth, both year over year and sequentially. We should expect this trend to continue…And it is not simply about spending more on R&D. Rather, it’s about driving more leverage from our existing portfolio and resources to create HP solutions. It’s about adding more agility to our scale and accelerating our innovation cycles.
HP today announced financial results for its fourth fiscal quarter ended October 31, 2010, with net revenue of $33.3 billion, up 8% from the prior-year period including a slight negative currency impact of about one percentage point.
Read the full press release by clicking here; excerpts are below
***We will update this post throughout the day with quotes, transcripts, and presentations relating to HP’s third quarter earnings report. Visit HP Investor Relations for more information or follow @hpnews on Twitter and Stocktwits.