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HP Q3 financial report: IPG revenue down 1% year-on-year
H
P announced financial results for its third fiscal quarter ended July 31, 2011. It also detailed in separate press releases plans to transform t h e c o m p a n y. R e p o r t s s h o w t h a t H P ’ s Imaging and Printing Group (IPG) revenue declined 1% year-over-year. HP unveiled the details of a plan to accelerate the strategy it introduced in March. The plan introduced will: • move HP into higher value, higher margin growth categories • sharpen HP's focus on its strategic priorities of cloud solutions and software with an emphasis on enterprise, commercial and government markets • increase investment in innovation to drive differentiation. As part of the transformation, HP announced that its board of directors has authorized the exploration of strategic alternatives for the company's Personal Systems Group. HP will consider a broad range of options that may include, among others, a full or partial separation of PSG from HP through a spin-off or other transaction. HP will discontinue operations for webOS devices, specifically the TouchPad and webOS phones which have not met internal milestones and financial targets. HP will continue to explore options to optimize the value of webOS sof tware going forward. In addition, HP announced the terms of a recommended transaction for all of the outstanding shares of Au t o n o m y C o r p o r a t i o n p l c f o r £ 2 5 . 5 0 ($42.11) per share in cash. ‘ We ' r e f o c u s e d o n i m p r o v i n g per for mance across the business’, said Léo Apotheker, HP president and chief e x e c u t i v e o f f i c e r. ‘ H P i s t a k i n g b o l d , transformative steps to position the company as a leader in the evolving
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www.recyclingtimes.com.cn | October 2011
Q3 FY11
Q3 FY10
Y/Y
Net revenue ($B)
$31.20
$30.70
1%
GAAP operating margin
8.10%
7.60%
0.5 pts
GAAP net earnings ($B)
1.9
1.8
9%
GAAP diluted EPS ($)
0.93
0.75
24%
Non-GAAP operating margin
9.80%
11.20%
1.4 pts
Non-GAAP net earnings ($B)
2.3
2.6
11.40%
Non-GAAP diluted EPS ($)
1.1
1.08
2%
information economy. Today's announced plan will allow HP to drive creation of long-ter m shareholder value through a focus on fewer fronts, thereby improving its ability to execute and invest in i n n o v a t i o n a n d d r i v e a h i g h e r- m a rg i n business mix.’ HP's commercial businesses remain healthy with 5% revenue growth year-overyear. HP's consumer businesses, within PSG and IPG, were collectively down 15% year-over-year. Personal Systems Group (PSG) revenue d e c l i n e d 3 % y e a rover-year with a 5.9% operating margin. PSG remains the PC market leader in terms of units, revenue and profit share. Commercial client revenue grew 9% and Consumer client revenue declined 17%. Imaging and Printing Group (IPG) revenue d e c l i n e d 1 % y e a rover-year with a 14.7% operating margin. Commercial revenue was down 7% y e a r- o v e r- y e a r w i t h commercial printer
hardware units up 1%. Consumer printer hardware revenue was up 1% year-overyear on 7% unit growth. IPG continued to drive innovation and momentum with digital presses and web-connected printers. For the fourth quarter of fiscal 2011, HP estimates revenue of approximately $32.1 billion to $32.5 billion and a GAAP diluted EPS of approximately $0.44 to $0.55. HP expects full year fiscal 2011 revenue to be in the range of $127.2 billion to $127.6 billion, with a GAAP diluted EPS of $3.59 to $3.70.