HP has reported net revenue for the third quarter slightly up on the previous year, largely influenced by declining PC and printer sales.

For the quarter, net revenue of $31,2-billion was up 1% from the prior-year period as reported and down 2% when adjusted for the effects of currency.

GAAP diluted earnings per share (EPS) was $0,93, up 24% from $0.75 in the prior-year period. Non-GAAP diluted EPS was $1,10, up 2% from $1,08 in the prior-year period. Non-GAAP financial information excludes after-tax costs of approximately $0,17 per share and $0,33 per share in the third quarter of fiscal 2011 and 2010, respectively, related primarily to the amortization of purchased intangibles, restructuring charges and acquisition-related charges.

“Our outlook reflects the challenges that we face across our businesses,” says Cathie Lesjak, HP executive vice-president and chief financial officer. “Dealing with these challenges will take time, but HP will navigate through the transformation to become a more focused, streamlined company.”

HP’s Commercial businesses remain healthy with 5% revenue growth year over year. HP’s Consumer businesses, within PSG and IPG, were collectively down 15% year over year.

Third quarter revenue was flat year over year in the Americas as well as in Europe, the Middle East and Africa at $14,1-billion and $11-billion, respectively. Revenue in Asia Pacific was $6,1-billion, representing a 9% increase year over year. When adjusted for the effects of currency, revenue was down 2% in the Americas, down 5% in Europe, the Middle East and Africa and up 1% in Asia Pacific. Revenue from outside of the US in the third quarter accounted for 65% of total HP revenue. BRIC countries (Brazil, Russia, India and China) generated revenue of $3,7-billion, up 12% over the year-ago period, accounting for 12% of total HP revenue.

Services revenue grew 4% year over year with a 13,5% operating margin. HP also announced the appointment of John Visentin as the new executive vice president for Enterprise Services reporting to Apotheker.

Enterprise Servers, Storage and Networking (ESSN )revenue grew 7% year over year with a 13% operating margin. Networking was up 15%, Industry Standard Servers was up 9%, Business Critical Systems was down 9%, and HP Storage was up 8%. 3PAR revenue accelerated, with triple-digit year-over-year growth operationally.

HP Software revenue grew 20% year over year with a 19,4% operating margin. HP Software revenue was driven by strong growth in licenses and services of 29% and 30%, respectively.

Personal Systems Group (PSG) revenue declined 3% year over 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 declined 1% year over year with a 14,7% operating margin. Commercial revenue was down 7% year over year with commercial printer hardware units up 1%. Consumer printer hardware revenue was up 1% year over year on 7% unit growth. IPG continued to drive innovation and momentum with digital presses and web-connected printers.

Financial Services revenue grew 22% year over year with a 9,4% operating margin. Financial Services continued to see its strong performance driven by both double-digit growth in lease volume and a healthy improvement in portfolio assets.

HP generated $3,2-billion in cash flow from operations in the third quarter. Inventory ended the quarter at $7,4-billion, with days of inventory flat year over year at 28 days.

For the fourth quarter of fiscal 2011, HP estimates revenue of approximately $32,1-billion to $32,5-billion, GAAP diluted EPS of approximately $0,44 to $0,55, and non-GAAP diluted EPS of approximately $1,12 to $1,16.

Fourth quarter fiscal 2011 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $0,61 to $0,68 per share, related primarily to restructuring and shutdown costs associated with webOS devices, the amortisation and impairment of purchased intangibles, restructuring charges and acquisition-related charges.

HP expects full year fiscal 2011 revenue in the range $127,2-billion to $127,6-billion, GAAP diluted EPS of $3,59 to $3,70, and non-GAAP diluted EPS of $4,82 to $4,86.