HP Announces Third Quarter Financial Results
HP announced financial results for its third fiscal quarter which ended JUly 31, with net revenue of $30.7 billion, up 11.4 percent from a year earlier including a favorable currency benefit of approximately one percentage point.
In the third quarter, GAAP diluted earnings per share (EPS) was $0.75, up from $0.69 in the prior-year period. Non-GAAP diluted EPS was $1.08, up from $0.92 in the prior-year period, including a one-time negative impact of approximately $0.02 per share related to a legal settlement.
Non-GAAP financial information excludes after-tax costs of approximately $0.33 per share and $0.23 per share in the third quarter of fiscal 2010 and 2009, respectively, related primarily to the amortization of purchased intangibles, restructuring charges and acquisition-related charges.
"The broad-based strength of HP's Q3 performance further demonstrates the power of our strategy and the discipline of our execution," said Cathie Lesjak, HP chief financial officer and interim chief executive officer. "We raised our full-year outlook and are continuing to build momentum in driving out costs, investing for profitable growth and capitalizing on HP's competitive advantages in the marketplace."
Information about HP's use of non-GAAP financial information is provided under "Use of non-GAAP financial information" below. Unless otherwise noted, all growth rates included in the narrative below reflect year-over-year comparisons.
Third quarter revenue was up 12 percent in the Americas to $14.2 billion. Revenue was up 9% in Europe, the Middle East and Africa and up 14 percent in Asia Pacific to $10.9 billion and $5.6 billion, respectively. When adjusted for the effects of currency, revenue was up 11 percent in the Americas, up 12 percent in Europe, the Middle East and Africa and up 8 percent in Asia Pacific.
Revenue from outside of the United States in the third quarter accounted for 63 percent of total HP revenue, with revenue in the BRIC countries (Brazil, Russia, India and China) increasing 21 percent while accounting for 11 percent of total HP revenue.