HP Reports First Quarter 2013 Results

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Thursday, February 21st 2013
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PALO ALTO, CA -- (Marketwire) -- 02/21/13 -- HP (NYSE: HPQ)

  • First quarter non-GAAP diluted earnings per share of $0.82, down 11% from the prior year, above previously provided outlook of $0.68 to $0.71
  • First quarter GAAP diluted earnings per share of $0.63, down 14% from the prior year, above previously provided outlook of $0.34 to $0.37 per share
  • First quarter net revenue of $28.4 billion, down 6% year over year and down 4% when adjusted for the effects of currency
  • Cash flow from operations of $2.6 billion, up 115% from the prior year
  • Returned $511 million in cash to shareholders in the form of dividends and share repurchases
  • Improved company net debt position for the fourth consecutive quarter by over $1 billion

HP first quarter fiscal 2013 financial performance



                                            Q1 FY13     Q1 FY12        Y/Y
GAAP net revenue ($B)                    $     28.4  $     30.0         (6%)
GAAP operating margin                           6.2%        6.8% (0.6 pts.)
GAAP net earnings ($B)                   $      1.2  $      1.5        (16%)
GAAP diluted EPS                         $     0.63  $     0.73        (14%)
Non-GAAP operating margin                       7.9%        8.6% (0.7 pts.)
Non-GAAP net earnings ($B)               $      1.6  $      1.8        (12%)
Non-GAAP diluted EPS                     $     0.82  $     0.92        (11%)


Information about HP's use of non-GAAP financial information is provided under "Use of non-GAAP financial information" below.

HP today announced financial results for its first fiscal quarter ended Jan. 31, 2013. First quarter GAAP diluted earnings per share (EPS) was $0.63, down from $0.73 in the prior-year period and above its previously provided outlook of $0.34 to $0.37 per share. First quarter non-GAAP diluted EPS was $0.82, down from $0.92 in the prior-year period and above its previously provided outlook of $0.68 to $0.71 per share. First quarter non-GAAP earnings information excludes after-tax costs of $373 million, or $0.19 per diluted share, related to the amortization of purchased intangible assets, restructuring charges and acquisition-related charges. For the first quarter, net revenue of $28.4 billion was down 6% year over year and down 4% when adjusted for the effects of currency.

"We beat our non-GAAP diluted EPS outlook for the quarter by $0.11 per share, driven by improved execution, improvement in our channel and go-to-market efforts and the impact of the restructuring program we announced in May 2012," said Meg Whitman, HP president and chief executive officer. "While there's still a lot of work to do to generate the kind of growth we want to see, our turnaround is starting to gain traction as a result of the actions we took in 2012 to lay the foundation for HP's future."

Outlook
For the second quarter of fiscal 2013, HP estimates non-GAAP diluted EPS to be in the range of $0.80 to $0.82 and GAAP diluted EPS to be in the range of $0.38 to $0.40. Second quarter fiscal 2013 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $0.42 per share, related primarily to the amortization of purchased intangible assets, restructuring charges and acquisition-related charges.

For the full year fiscal 2013, HP estimates a non-GAAP diluted EPS to be in the range of $3.40 to $3.60 and GAAP diluted EPS to be in the range of $2.30 to $2.50, in line with HP's previously communicated outlook. Full year fiscal 2013 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $1.10 per share, related primarily to the amortization of purchased intangible assets, restructuring charges and acquisition-related charges.

"Our primary focus is to deliver on the full year outlook, and I feel good about the rest of the year," added Whitman. "We'll be bringing a number of new programs and disruptive innovations to market in the coming quarters, and we expect the benefits from our restructuring will accelerate through fiscal 2013."

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