HP has reported revenue and profit down for the third quarter, but is positive that it's nearing the end of the downturn.
Financial results for the third fiscal quarter, ended 31 July 2009, showed net revenue of $27,5-billion, down 2% from a year earlier and up 4% when adjusted for the effects of currency.
In the third quarter, GAAP operating profit was $2,2-billion and GAAP diluted earnings per share (EPS) was $0,67, down from $0,80 in the prior-year period. Non-GAAP operating profit was $3-billion, with non-GAAP diluted EPS of $0,91, up from $0.86 in the prior-year period. Non-GAAP financial information excludes $568-million of adjustments on an after-tax basis, or $0,24 per diluted share, related primarily to amortization of purchased intangible assets, restructuring charges and acquisition-related charges.
"HP’s performance this quarter is a result of our strong business portfolio, efficient cost structure and scale," says Mark Hurd, CEO and chairman of HP> "We made positive gains in extending our market leadership in key segments and strengthening our competitive position.
“Business is stabilising, and we are confident that HP will be an early beneficiary of an economic turnaround and will continue to outperform when conditions improve.”
Revenue grew 8% in the Americas to $12,6-billion. Revenue declined 12% in Europe, the Middle East and Africa and 4% in Asia Pacific to $9,9-billion and $5-billion, respectively.
When adjusted for the effects of currency, revenue grew 11% in the Americas while declining 2% in Europe, the Middle East and Africa while Asia Pacific was flat.
Revenue from outside of the United States in the third quarter accounted for 62% of total revenue, with revenue in the BRIC countries (Brazil, Russia, India and China) declining 6% over the prior-year period while accounting for 10% of total HP revenue.