HP Reports 3Q 2013 Results
Aug 26, 2013 (Close-Up Media via COMTEX) --
HP announced financial results for its third fiscal quarter ended July 31.
In a release on Aug. 21, the Company said that third quarter GAAP diluted earnings per share was $0.71, up from a GAAP diluted loss per share of $4.49 in the prior-year period and above its previously provided outlook of $0.56 to $0.59 per share.
Third quarter non-GAAP diluted EPS was $0.86, down from $1.00 in the prior-year period and within its previously provided outlook of $0.84 to $0.87 per share. Third quarter non-GAAP earnings information excludes after-tax costs of $286 million, or $0.15 per diluted share, related to amortization of purchased intangible assets, restructuring charges and acquisition-related charges.
For the third quarter, net revenue of $27.2 billion was down 8 percent year over year and down 7 percent when adjusted for the effects of currency.
"We once again achieved the financial performance we said we would, delivering $0.86 in non-GAAP diluted earnings per share, within our previously provided outlook of $0.84 to $0.87," said Meg Whitman, HP president and chief executive officer. "I remain confident that we are making progress in our turnaround. We are already seeing significant improvement in our operations, we are successfully rebuilding our balance sheet, our cost structure is more closely aligned with our revenue and we have reignited innovation at HP, with a focus on the customer."
For the full year fiscal 2013, HP estimates non-GAAP diluted EPS to be in the range of $3.53 to $3.57 and GAAP diluted EPS to be in the range of $2.67 to $2.71, in line with HP's previously communicated outlook. Full year fiscal 2013 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $0.86 per share, related to the amortization of purchased intangible assets, restructuring charges and acquisition-related charges.
HP generated $2.7 billion in cash flow from operations in the third quarter, down 6 percent from the prior-year period. Inventory ended the quarter at $6.5 billion, down 1 day year over year to 28 days. Accounts receivable ended the quarter at $14.3 billion, down 1 day year over year to 47 days. Accounts payable ended the quarter at $13.3 billion, up 7 days year over year to 57 days. HP's dividend payment of $0.1452 per share in the third quarter resulted in cash usage of $280 million. HP also utilized $3 million of cash during the quarter to repurchase approximately 168,000 shares of common stock in the open market. HP exited the quarter with $13.7 billion in gross cash.
Third quarter fiscal 2013 segment results
-Personal Systems revenue was down 11 percent year over year with a 3.0 percent operating margin. Commercial revenue decreased 3 percent and Consumer revenue declined 22 percent. Total units were down 8 percent with Desktops units down 9 percent and Notebooks units down 14 percent.
-Printing revenue declined 4 percent year over year with a 15.6 percent operating margin. Total hardware units were up 5 percent with Commercial hardware units up 12 percent and Consumer hardware units up 2 percent. Supplies revenue was down 4 percent.
-Enterprise Group revenue declined 9 percent year over year with a 15.2 percent operating margin. Networking revenue was flat, Industry Standard Servers revenue was down 11 percent, Business Critical Systems revenue was down 26 percent, Storage revenue was down 10 percent and Technology Services revenue was down 7 percent.
-Enterprise Services revenue declined 9 percent year over year with a 3.3 percent operating margin. Application and Business Services revenue was down 11 percent and Infrastructure Technology Outsourcing revenue declined 7 percent.
-Software revenue was up 1 percent year over year with a 20.5 percent operating margin. Support revenue was up 4 percent, license revenue was flat, professional services revenue was down 11 percent and SaaS revenue was up 4 percent.
-HP Financial Services revenue was down 6 percent year over year with a 4 percent decrease in net portfolio assets and a 9 percent decrease in financing volume. The business delivered an operating margin of 11.3 percent.
((Comments on this story may be sent to email@example.com))
[ InfoTech Spotlight's Homepage ]