HP announces 5% increase in revenue; Provides 2009 Outlook
Press release from the issuing company
(November 18, 2008) HP today announced preliminary results for the fourth fiscal quarter 2008 with revenue of $33.6 billion, a year-over-year increase of 19% or 16% when adjusted for the effects of currency. Excluding the impact of the EDS acquisition, HP revenue grew 5% year over year or 2% when adjusted for the effects of currency.
In the fourth quarter, preliminary GAAP and non-GAAP diluted earnings per share (EPS) were $0.84 and $1.03, respectively. Non-GAAP EPS estimates exclude after-tax adjustments related to amortization of purchased intangibles, restructuring, in-process R&D and other acquisition-related charges of approximately $0.19 per share.
"HP delivered another solid quarter as it continues to benefit from its global reach, diverse customer base, broad portfolio and numerous cost initiatives," said Mark Hurd, HP chairman and chief executive officer. "Our ability to execute in a challenging marketplace differentiates HP, enabling it to increase share, expand earnings and emerge from the current economic environment as a stronger force."
Fiscal 2009 outlook
In providing its outlook for the first fiscal quarter and the full fiscal year 2009, the company has taken into consideration the current economic environment and the relative strength of the U.S. dollar. Based on current currency exchange rates, the company now expects an unfavorable year-over-year currency impact on revenue of approximately 5 percentage points in the first quarter and roughly 6 - 7 percentage points for the full year and this impact is reflected in its outlook.
For the first fiscal quarter of 2009, HP expects revenue of approximately $32.0 billion to $32.5 billion, GAAP diluted EPS in the range of $0.80 to $0.82, and non-GAAP diluted EPS in the range of $0.93 to $0.95. Q109 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $0.13 per share, related primarily to the amortization of purchased intangibles.
For the full fiscal year 2009, HP expects revenue of approximately $127.5 billion to $130.0 billion, GAAP diluted EPS in the range of $3.38 to $3.53, and non-GAAP diluted EPS in the range of $3.88 to $4.03. FY09 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $0.50 per share, related primarily to the amortization of purchased intangibles.
HP will provide more detailed information about its fourth quarter and full year results in its previously scheduled Q408 earnings announcement and webcast on Nov. 24. HP is providing this preliminary earnings information due to the current economic environment and its year-end earnings announcement being scheduled to occur later in the month relative to most quarters.
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