HP first quarter net profit of $416 million per share earnings of $14

According to overseas media reports, due to restructuring and other spending growth, HP fourth quarter net profit fell 62%, but still exceeded Wall Street's expectations.

In the quarter ended October 31st, HP's net profit of $416 million, earnings per share of 14 cents. This performance has declined over the same period last year, the 2004 quarter of fiscal year fourth, HP's net profit of $1 billion 91 million, earnings per share of 37 cents. HP's fourth quarter sales of $22 billion 900 million, an increase of $21 billion 400 million over the same period last year, $7%. In accordance with GAAP, HP's fourth quarter operating margin was 1%, down from last year's $6%.

Excluding special expenses, HP's fourth quarter net profit of $1 billion 500 million, earnings per share of 51 cents, over the same period last year. 2004 quarter of fiscal year fourth, HP is not included in the special expenditure net profit of $1 billion 200 million, earnings per share of 41 cents. HP's performance exceeded Wall Street expectations, Thomson Financial survey, analysts had expected HP's fourth quarter is not included in the special expenditure per share earnings of $46, sales of $22 billion 780 million. In August, HP expects fourth quarter sales of $22 billion 400 million to $22 billion 800 million.

The fourth quarter of this year, HP personal systems group revenue of $7 billion 100 million, an increase of 9%; operating profit of $200 million, accounting for the proportion of revenues to 2.8% over the same period last year, operating profit of $77 million, accounting for the proportion of revenues was 1.2%. HP fourth quarter computer sales grew by 13%, of which desktop revenue grew by 1%, notebook revenue grew by 23%.

HP imaging and printing group revenues of $6 billion 800 million, an increase of 4%, operating profit of $896 million, down from $1 billion 100 million last year. HP fourth quarter consumer hardware revenue fell by 4%, product sales growth of 6%; commercial hardware revenue grew by 4%, product sales grew by 16%. HP color laser printer sales grew by 41%, the company's multi function printer sales grew by 83%.

HP enterprise storage and server revenue of $4 billion 500 million, an increase of 10%; operating profit of $405 million, higher than last year's $100 million. HP fourth quarter industry standard server revenue grew by 12%, corporate revenue fell by 1%, network storage revenue grew by 17%.

HP services revenue of $3 billion 900 million, an increase of 6%; operating profit of $322 million, down from $375 million last year. HP fourth quarter management services revenue grew by 9%, technology services revenue grew by 4%, consulting and integrated services revenue grew by 11%.

HP software sector revenues of $311 million, an increase of 11%; operating profit of $27 million, operating loss of $7 million for the same period last year. HP financial services revenue was $514 million, an increase of 3% over the same period last year, operating profit of $52 million, higher than last year's $19 million.

Throughout the 2005 fiscal year, HP's net profit of $2 billion 400 million, earnings per share of $0.82, sales of $86 billion 700 million. 2004 fiscal year, HP's net profit of $3 billion 500 million, earnings per share of $1.15, sales of $79 billion 900 million. HP expects fiscal 2006 first quarter earnings per share of $0.46 to $0.48, which is not included in the $0.03 to $0.04 in equity incentive spending. HP expects fiscal 2006 earnings per share of $1.88 to $1.95, which is not included in approximately $0.13 in equity incentive spending.