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HP Earnings Slide In Fiscal Q4

Palo Alto, Calif.
– Hewlett-Packard reported lower net earnings on slightly lower net revenue in
its fiscal fourth quarter.

GAAP net revenue
was $32.1 billion down 3 percent year on year, but GAAP net earnings dropped 91
percent from $2.5 billion in the prior year’s final quarter to $200 million
this year.

non-GAAP net revenue includes an additional $200 million from the exclusion of
sales incentive programs due to the wind down of HP’s WebOS device business.

Fourth quarter
non-GAAP earnings excludes after-tax costs of $2.1 billion, also related to the
wind down, and impairment of goodwill and purchased intangible assets,
amortization of purchased intangible assets, restructuring charges and
acquisition-related charges.

Fourth quarter
GAAP net revenue was $14.5 billion, down 4 percent year over year and down 5
percent when adjusted for the effects of currency. Non-GAAP net revenue in the
Americas was $14.6 billion, down 3 percent year over year and down 4 percent
when adjusted for the effects of currency.

In its two
divisions with consumer products, HP’s personal systems group  revenue declined 2 percent year over year during
the fiscal fourth quarter with a 5.7 percent operating margin. Commercial
client revenue grew 5 percent, and consumer client revenue declined 9 percent.
Total units were up 2 percent with 5 percent growth in desktop units and 1
percent growth in notebook units.

In the quarter, imaging
and printing group revenue declined 10 percent year over year with a 12.8
percent operating margin. Consumer printer hardware revenue was down 8 percent
year over year with an 8 percent decline in units.

Corporately GAAP
net revenue during the fiscal year was up 1 percent to $127.2 billion and GAAP
net earnings were $7.1 billion, down 19 percent.