HP Posts Higher Sales, Lower Earnings

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Palo Alto, Calif. — Hewlett-Packard reported slightly higher sales but 13 percent lower GAAP net earnings for its fiscal first quarter, ended Jan. 31.

Net revenue for the quarter was $28.8 billion, up 1 percent from $28.5 billion in the prior year’s first quarter. Net revenue would have been up 4 percent from a year earlier when adjusted for the effects of currency.

GAAP net earnings were $1.9 billion, down 13 percent from the prior year’s $2.1 billion. Non-GAAP net earnings were even with the prior year’s first quarter, at $2.3 billion.

“HP is a market leader executing well in a tough market,” said Mark Hurd, HP chairman/CEO. “Our market strength, disciplined cost management and diverse portfolio allowed us to differentiate HP in the global marketplace and gain share in key markets

Revenue grew 11 percent in the Americas to $12.4 billion, HP reported.

HP’s personal systems group revenue declined 19 percent to $8.8 billion, with unit shipments down 4 percent. Notebook revenue for the quarter was down 13 percent, while desktop revenue declined 25 percent. Commercial client revenue was down 19 percent, while consumer client revenue decreased 18 percent. Operating profit was $435 million, down from $628 million in the prior-year period.

In HP’s imaging and printing group, revenue declined 19 percent to $6 billion. Consumer printer hardware units were down 31 percent. Operating profit was $1.1 billion, the same as the prior-year period.

HP software revenue declined 7 percent to $878 million. Operating profit was $140 million, up from $49 million in the prior-year period.

HP estimated second-quarter fiscal year 2009 revenue will decline approximately 2 percent to 3 percent from the prior-year period and said full-year fiscal year 2009 revenue will decline approximately 2 percent to 5 percent from the prior-year period.

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