HP Posts Double-Digit Revenue Gain In Fis. Q4

By Steve Smith -- TWICE, 12/1/2008

PALO ALTO, CALIF. — Hewlett-Packard reported double-digit gains in net revenue in its fiscal fourth quarter, ended Oct. 31, of $33.6 billion, up 19 percent from the prior year.

That is up 16 percent when adjusted for the effects of currency. Excluding EDS revenue, net revenue grew 5 percent year over year, or 2 percent when adjusted for the effects of currency.

But net earnings were off slightly from $2.16 billion during the same period last year to $2.11 billion for this year's fourth quarter.

"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/CEO.

When adjusted for the effects of currency, revenue grew 17 percent in the Americas and revenue from outside the outside the United States in the fourth quarter accounted for 68 percent of total revenue.

In HP's personal systems group, revenue grew 10 percent to $11.2 billion, with unit shipments up 19 percent during the fiscal fourth quarter. Notebook revenue for the quarter grew 21 percent, while desktop revenue declined 2 percent. Commercial client revenue grew 7 percent, while consumer client revenue increased 15 percent. Operating profit was $616 million, or 5.5 percent of revenue, up from $589 million, or 5.8 percent of revenue, in the prior-year period.

In the imaging and printing group, revenue declined 1 percent to $7.5 billion. Supplies revenue grew 9 percent, while commercial hardware revenue and consumer hardware revenue declined 10 percent and 21 percent, respectively. Printer unit shipments decreased 8 percent, with Consumer printer hardware units down 8 percent and commercial printer hardware units down 9 percent. Operating profit was $1.2 billion, or 15.5 percent of revenue, vs. $1.1 billion, or 14.5 percent of revenue, in the prior-year period, HP reported.

HP's full-year fiscal net revenue was $118.4 billion, representing growth of 13 percent, or 8 percent when adjusted for the effects of currency.

Un-audited net earnings for the year were $8.329 billion compared with the previous year's $7.264 billion.