News

posted on 20 February 2008 08:41

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HP announced its Q1 08 (first quarter 2008) results with net revenue up 13 percent to $28.5 billion from the year-ago quarter. Storage and servers did well, but not well enough to prevent a head responsible for their sales in the Americas appearing to roll.

Highlights 

- First quarter GAAP operating profit up 42% to $2.6 billion; $0.80 earnings per share, up from $0.55 a year earlier 
- First quarter non-GAAP operating profit up 31% to $2.8 billion; $0.86 earnings per share, up from $0.65 a year earlier 
- Cash flow from operations of $3.2 billion
- $3.3 billion of share repurchases

- Personal Systems Group (PSG) revenue grew 24% year over year to $10.8 billion, with unit shipments up 27% on a year-over-year basis.

- Imaging and Printing Group (IPG) revenue grew 4% year over year to $7.3 billion. On a year-over-year basis, supplies revenue grew 6%, Commercial hardware revenue grew 7% and Consumer hardware revenue declined 5%.

- Enterprise Storage and Servers (ESS) reported revenue of $4.8 billion, up 9% over the prior-year period fueled by ESS blades, which grew 81%. On a year-over-year basis, industry-standard server revenue increased 11%. Storage revenue grew 10%, with revenue growth of 14% in the midrange EVA line. Business critical systems revenue increased 1%, with Integrity systems growth of 37% offset by declines in PA-RISC and Alpha. Operating profit was $673 million, or 14.0% of revenue, up from $453 million, or 10.2% of revenue, in the prior-year period.

Comment: High-end disk arrays, low-end arrays and tape products did not sparkle. but no losses were mentioned.

- HP Services (HPS) revenue increased 11% year over year to $4.4 billion.

- HP Software revenue grew 11% over the prior-year period to $666 million, led by 19% growth in the Business Technology Optimization portfolio.

- HP Financial Services (HPFS) reported revenue of $642 million, an increase of 17% year over year.

Outlook
HP raised its expectations and previous guidance; it estimates Q2 FY08 revenue will be approximately $27.7 billion to $27.9 billion. Second quarter FY08 GAAP diluted EPS is expected to be approximately $0.77 to $0.78 and non-GAAP diluted EPS is expected to be approximately $0.83 to $0.84.

HP estimates FY08 revenue will be approximately $113.5 billion to $114.0 billion.