HP net revenue increases 1 percent to $31.2 billion in Q3 2011

HP reported net revenue of $31.2 billion for the third
quarter of fiscal 2011, registering a 1 percent increase compared with $30.7
billion in Q3 FY 2010.

 

 

Our outlook reflects the challenges that we face across
our businesses,” said 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 FINANCIAL ANALYSIS

 

HP’s Commercial businesses remain healthy with 5 percent
revenue growth year over year. HP’s Consumer businesses, within PSG and IPG,
were collectively down 15 percent 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
$11.0 billion, respectively.

 

Revenue in Asia Pacific was $6.1 billion, representing a
9 percent increase year over year. When adjusted for the effects of currency,
revenue was down 2 percent in the Americas, down 5 percent in Europe, the
Middle East and Africa and up 1 percent in Asia Pacific.

 

Revenue from outside of the United States in the third
quarter accounted for 65 percent of total HP revenue. BRIC countries (Brazil,
Russia, India and China) generated revenue of $3.7 billion, up 12 percent over
the year-ago period, accounting for 12 percent of total HP revenue.

 

Services revenue grew 4 percent year over year with a
13.5 percent 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 percent year over year with a 13.0 percent operating margin. Networking
was up 15 percent, Industry Standard Servers was up 9 percent, Business
Critical Systems was down 9 percent, and HP Storage was up 8 percent. 3PAR
revenue accelerated, with triple-digit year-over-year growth operationally.

 

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

 

Personal Systems Group (PSG) revenue declined 3 percent
year over year with a 5.9 percent operating margin. PSG remains the PC market
leader in terms of units, revenue and profit share. Commercial Client revenue
grew 9 percent and Consumer Client revenue declined 17 percent.

 

Imaging and Printing Group (IPG) revenue declined 1
percent year over year with a 14.7 percent operating margin. Commercial revenue
was down 7 percent year over year with commercial printer hardware units up 1
percent. Consumer printer hardware revenue was up 1 percent year over year on 7
percent unit growth. IPG continued to drive innovation and momentum with
digital presses and web-connected printers.

 

Financial Services revenue grew 22 percent year over year
with a 9.4 percent 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 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.

 

By Telecomlead.com Team
editor@telecomelad.com

 

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