HP has announced financial results for its fourth fiscal quarter ended 31 October 2009, with net revenue of $30,8-billion, down 8% from a year earlier and down 5% when adjusted for the effects of currency.

In the fourth quarter, GAAP diluted net earnings per share (EPS) were $0,99, compared with $,.84 in the prior-year period. Non-GAAP EPS were $1,14, compared with $1,03 in the prior-year period. Non-GAAP financial information excludes after-tax costs related primarily to the amortization of purchased intangibles, restructuring charges and acquisition-related charges of approximately $0,15 per share and $0,19 per share in the fourth fiscal quarter of 2009 and 2008, respectively.
“HP’s solid performance in Services drove record profit, and the accelerated pace in signings creates strong momentum going into 2010,” says Mark Hurd, chairman and chief executive officer, HP. “Our operational execution and improving cost structure generated strong quarterly and year-end results. We expect to outperform the market due to our significant scale, broad portfolio and market-leading position.”
Net revenue for the full fiscal year 2009 was $114,6 billion, down 3% compared with the prior-year period or up 1% when adjusted for the effects of currency. GAAP operating profit was $10,1-billion and GAAP diluted EPS was $3,14, down from $3,25 in the prior year. Non-GAAP operating profit was $12.6 billion, and non-GAAP diluted EPS was $3,85, up from $3,62 in the prior-year period. Non-GAAP financial information excludes $1,7-billion of adjustments on an after-tax basis, or $0,71 per diluted share, related to the amortization of purchased intangible assets, restructuring charges, acquisition-related charges and in-process research and development charges.
“Relentless focus on driving efficiencies across the business has given HP a significant competitive advantage,” says Cathie Lesjak, executive vice-president and chief financial officer at HP. “Our skill in executing strong acquisitions and integrating them seamlessly improves the value of our portfolio, strengthens the business and contributes to our ability to expand in key growth markets in the future.”
Services revenue increased 8% to $8,9-billion. Infrastructure Technology Outsourcing reported revenue of $4,1-billion while Technology Services, Application Services and Business Process Outsourcing posted revenue of $2,5-billion, $1,5-billion and $778-million, respectively. Operating profit was $1,4-billion, or 16,2% of revenue, up from $945-million, or 11,4% of revenue, in the prior-year period. With the EDS integration tracking ahead of plan, services ended the fiscal year with strong momentum in signings and a significant number of new logo wins.
Enterprise Storage and Servers (ESS) reported total revenue of $4,2-billion, down 17%. Storage revenue declined 20% with the midrange EVA product line down 23%. Industry Standard Server revenue declined 10% and Business Critical Systems revenue declined 33%, while ESS blade revenue was down 8%. Operating profit was $481-million, or 11,4% of revenue, down from $705-million, or 13,9% of revenue, in the prior-year period.
HP Software revenue declined 16% to $967-million. Business Technology Optimization revenue declined 16% and Other Software revenue declined 15% over the prior-year period. Operating profit was $234-million, or 24,2% of revenue, up from $211-million, or 18,4% of revenue, in the prior-year period.
Personal Systems Group (PSG) posted an increase of unit shipments of 8% and maintained the leading market share position in PCs worldwide. PSG revenue declined 12% to $9,9-billion. Notebook revenue for the quarter was down 8%, while Desktop revenue declined 16%. Commercial client revenue was down 15%, while Consumer client revenue decreased 8%. Operating profit was $460-million, or 4,7% of revenue, down from $616-million, or 5,5% of revenue, in the prior-year period.
Imaging and Printing Group (IPG) revenue declined 15% to $6,5-billion. Supplies revenue was down 8% while Commercial hardware revenue and Consumer hardware revenue declined 32% and 17%, respectively. Printer unit shipments decreased 20%, with Commercial printer hardware units down 38% and Consumer printer hardware units down 14%. Operating profit was $1,2-billion, or 18,1% of revenue, versus $1,2-billion, or 15,3% of revenue, in the prior-year period.
HP Financial Services (HPFS) reported revenue of $726-million, up 5% from the prior-year period. Financing volume increased 6%, and net portfolio assets increased 21%. Operating margin was 9,1% of revenue, up from 7,4% in the prior-year period.