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HP Reports Higher Fiscal Q1 Revenue, Profits

Palo Alto, Calif. – HP reported higher net revenue and profits for its first fiscal quarter which ended Jan. 31.

HP noted that net revenue was $28.5 billion, up 13 percent from a year earlier $25.1 billion and up 8 percent when adjusted for the effects of currency.

GAAP net earnings for the quarter were $2.1 billion up 38 percent from $1.5 billion for last year’s first quarter. Non-GAAP net earnings were $2.3 billion up 25 percent from $1.8 billion in the previous first quarter.

“We are raising our guidance yet again, reflecting our confidence in anticipated cost reductions and share gains in key markets,” said Mark Hurd, HP chairman and chief executive officer. “We added more than 2,000 sales positions in the past year through acquisitions and hiring. HP remains well positioned for profitable growth as we continue to focus on our numerous cost initiatives and improve our market coverage.”

In HP’s Personal Systems Group (PSG) revenue grew 24 percent year over year to $10.8 billion, with unit shipments up 27 percent on a year-over-year basis. Notebook revenue for the quarter grew 37 percent over the prior-year period, while desktop revenue grew 15 percent. Commercial client revenue grew 22 percent year over year, while Consumer client revenue increased 29 percent. Operating profit was $628 million, or 5.8 percent of revenue, up from $414 million, or 4.7 percent of revenue, in the prior-year period, HP reported.

For its Imaging and Printing Group (IPG) revenue grew 4 percent year over year to $7.3 billion. On a year-over-year basis, supplies revenue grew 6 percent, Commercial hardware revenue grew 7 percent and Consumer hardware revenue declined 5 percent. Printer unit shipments increased 1 percent year over year, with Consumer printer hardware units down 2 percent and Commercial printer hardware units up 13 percent. Momentum in key growth initiatives continued, with solid growth in both the Graphic Arts and the Enterprise businesses, the company said. Operating profit was $1.2 billion, or 15.7 percent of revenue, up from $1.1 billion, or 15.3 percent of revenue, in the prior-year period.