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HP Reports Higher Q2 Sales, Lower Net

Palo Alto, Calif. — HP reported a 13 percent gain in net revenue to $25.5 billion for its second fiscal quarter, ended April 30.

However net earnings were down 7 percent to $1.8 billion and non-GAAP net earnings were down 4 percent to $1.9 billion.

“This was a strong performance for HP,” said Mark Hurd, HP chairman/CEO. “We generated $3 billion of revenue growth, continued to expand earnings and achieved record cash flow from operations. While we still have considerable work ahead of us, I am confident we can continue to execute with discipline and deliver strong financial returns.”

During the quarter, on a year-over-year basis, revenue in the Americas grew 11 percent to $10.7 billion.

In the personal systems group revenue grew 24 percent year-over-year to $8.7 billion, with unit shipments up 30 percent on a year-over-year basis. Notebook revenue grew 45 percent over the prior year period, while desktop revenue grew 9 percent. Operating profit was $417 million, or 4.8 percent of revenue, up from a profit of $248 million, or 3.6 percent of revenue, in the prior year period, HP reported.

For the imaging and printing group revenue grew 6 percent year-over-year to $7.2 billion. On a year-over-year basis, supplies revenue grew 10 percent, commercial hardware revenue grew 3 percent and consumer hardware revenue declined 2 percent. Printer unit shipments increased 11 percent year-over-year, with consumer printer hardware units up 7 percent and commercial printer hardware units up 21 percent.

HP said momentum in key growth initiatives continued, with printer-based multifunction printers up 40 percent, and color laser printers up 19 percent. HP Indigo Press printed page volume grew 43 percent over the prior year period. Operating profit was $1.2 billion, or 16.3 percent of revenue, up from a profit of $1 billion, or 15.5 percent of revenue, in the prior year period.