PALO ALTO, Calif., May 13, 2008 (BUSINESS WIRE) -- HP (NYSE:HPQ) today announced preliminary results for the second
fiscal quarter 2008, with revenue of $28.3 billion compared with $25.5
billion one year ago.
In the second quarter, preliminary GAAP diluted earnings per share
(EPS) were $0.80 and non-GAAP diluted EPS were $0.87, compared with
second quarter fiscal 2007 GAAP diluted EPS of $0.65 and non-GAAP
diluted EPS of $0.70. Non-GAAP diluted EPS estimates exclude after-tax
costs related primarily to the amortization of purchased intangible
assets of approximately $0.07 per share and $0.05 per share in the
second quarter of fiscal 2008 and fiscal 2007, respectively.
The second quarter results were highlighted by solid performance
across HP's business segments and strong cash flow from operations.
For the third fiscal quarter of 2008, HP estimates revenue of
approximately $27.3 billion to $27.4 billion, GAAP diluted EPS in the
range of $0.76 to $0.77, and non-GAAP diluted EPS in the range of
$0.82 to $0.83. Non-GAAP diluted EPS guidance excludes after-tax costs
of approximately $0.06 per share, related primarily to the
amortization of purchased intangible assets.
HP estimates full-year FY08 revenue will be approximately $114.2
billion to $114.4 billion, up from its previous estimate of $113.5
billion to $114 billion. FY08 GAAP diluted EPS is expected to be in
the range of $3.30 to $3.34, up from its previous estimate of $3.26 to
$3.30, and FY08 non-GAAP diluted EPS is expected to be in the range of
$3.54 to $3.58, up from its previous estimate of $3.50 to $3.54. FY08
non-GAAP diluted EPS estimates exclude after-tax costs of
approximately $0.24 per share, related primarily to the amortization
of purchased intangibles. These estimates for both the third quarter
and full year of fiscal 2008 do not reflect the potential impact of
the acquisition of EDS that HP announced today.
HP is issuing this preliminary earnings announcement to facilitate
communications with investors regarding today's announcement that HP
has entered into a definitive merger agreement to acquire EDS (see "HP
to Acquire EDS for $13.9 billion" for details).
Updated earnings announcement date
In conjunction with today's announcement of the acquisition of
EDS, HP is now scheduled to release its final results for the second
fiscal quarter on Tuesday, May 20, 2008, with a conference call
scheduled for 5 p.m. ET/2 p.m. PT that day to provide additional
details. An audio webcast of the conference call will be available at
www.hp.com/investor/q22008webcast. A replay of the audio webcast will
be available at the same website shortly after the call.
About HP
HP focuses on simplifying technology experiences for all of its
customers - from individual consumers to the largest businesses. With
a portfolio that spans printing, personal computing, software,
services and IT infrastructure, HP is among the world's largest IT
companies, with revenue totaling $107.7 billion for the four fiscal
quarters ended Jan. 31, 2008. More information about HP is available
at www.hp.com.
Use of non-GAAP financial information
To supplement HP's historical and forecasted financial results
presented on a GAAP basis, HP provides non-GAAP diluted earnings per
share. Non-GAAP diluted earnings per share is defined to exclude the
effects of any restructuring charges, charges relating to the
amortization of purchased intangible assets, pension curtailment gains
and in-process research and development charges recorded during the
relevant period. In addition, non-GAAP diluted earnings per share are
adjusted by the amount of additional taxes or tax benefit associated
with each non-GAAP item. HP's management uses non-GAAP diluted
earnings per share for purposes of evaluating and forecasting HP's
financial performance. HP believes that providing non-GAAP diluted
earnings per share to investors in addition to the related GAAP
measure provides investors with greater transparency to the
information used by HP's management in its financial and operational
decision-making and allows investors to see HP's results "through the
eyes" of management. Non-GAAP diluted earnings per share may have
limitations as an analytical tool, and this additional non-GAAP
financial information is not meant to be considered in isolation or as
a substitute for diluted earnings per share prepared in accordance
with GAAP.
Forward-looking statements
This news release contains forward-looking statements that involve
risks, uncertainties and assumptions. If the risks or uncertainties
ever materialize or the assumptions prove incorrect, the results of HP
may differ materially from those expressed or implied by such
forward-looking statements and assumptions. All statements other than
statements of historical fact are statements that could be deemed
forward-looking statements, including but not limited to any
projections of revenue, margins, expenses, earnings, tax provisions,
cash flows, benefit obligations, share repurchases or other financial
items; any statements of the plans, strategies, and objectives of
management for future operations, including execution of cost
reduction programs and restructuring plans; any statements concerning
the expected development, performance or market share relating to
products or services; any statements regarding pending investigations,
claims or disputes; any statements of expectation or belief; and any
statements of assumptions underlying any of the foregoing. Risks,
uncertainties and assumptions include macroeconomic and geopolitical
trends and events; execution and performance of contracts by
suppliers, customers and partners; the challenge of managing asset
levels, including inventory; the difficulty of aligning expense levels
with revenue changes; assumptions related to pension and other
post-retirement costs; expectations and assumptions relating to the
execution and timing of cost reduction programs and restructuring
plans; the resolution of pending investigations, claims and disputes;
and other risks that are described in HP's Annual Report on Form 10-K
for the fiscal year ended October 31, 2007 and HP's other filings with
the Securities and Exchange Commission, including HP's Quarterly
Report on Form 10-Q for the fiscal quarter ended January 31, 2008. As
in prior periods, the financial information set forth in this release,
including tax-related items, reflects estimates based on information
available at this time. While HP believes these estimates to be
meaningful, these amounts could differ materially from actual reported
amounts in HP's Quarterly Report on Form 10-Q for the fiscal quarter
ended April 30, 2008. In particular, determining HP's actual tax
balances and provisions as of April 30, 2008 requires extensive
internal and external review of tax data (including consolidating and
reviewing the tax provisions of numerous domestic and foreign
entities), which is being completed in the ordinary course of
preparing HP's Form 10-Q. HP assumes no obligation and does not intend
to update these forward-looking statements.
Note to editors: More news from HP, including links to RSS feeds,
is available at www.hp.com/hpinfo/newsroom/.
(C) 2008 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. HP shall not be
liable for technical or editorial errors or omissions contained
herein.
SOURCE: HP
HP
Robert Sherbin, +1 650 857 2381
robert.sherbin@hp.com
Emma McCulloch, +1 650 857 4183
emma.mcculloch@hp.com
Asa Svanstrom, +1 650 857 2246 (Investors)
asa.svanstrom@hp.com
HP Media Hotline, +1 866 266 7272
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