HP Preliminary Q4 2009 Results

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Raises Fiscal Year 2010 Earnings and Revenue Outlook

PALO ALTO, Calif., Nov 11, 2009 -- HP (NYSE: HPQ) today announced preliminary results for the fourth fiscal quarter 2009, with revenue of $30.8 billion, down 8% from a year earlier; down 5% when adjusted for the effects of currency and up 12% sequentially.

In the fourth quarter, preliminary GAAP diluted earnings per share (EPS) were $0.99, compared with $0.84 in the prior-year period. Preliminary non-GAAP EPS were $1.14, compared with fourth fiscal quarter 2008 non-GAAP EPS of $1.03. Non-GAAP diluted EPS estimates exclude after-tax costs related primarily to the amortization of purchased intangibles, restructuring charges and acquisition-related charges of approximately $0.15 per share and $0.19 per share in the fourth fiscal quarter of 2009 and 2008, respectively.

"Solid execution drove exceptional performance for HP this quarter, fueled by significant growth in China," said Mark Hurd, chairman and chief executive officer, HP. "We are delivering on our strategy and are well positioned going into 2010."

Outlook

For the first fiscal quarter of 2010, HP estimates revenue of approximately $29.6 billion to $29.9 billion, GAAP diluted EPS in the range of $0.90 to $0.92, and non-GAAP diluted EPS in the range of $1.03 to $1.05. First fiscal quarter 2010 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $0.13 per share, related primarily to the amortization of purchased intangibles, restructuring charges and acquisition-related charges.

HP estimates full fiscal year 2010 revenue will be approximately $118.0 billion to $119.0 billion, up from its previous estimate of $117.0 billion to $118.0 billion. Full fiscal year 2010 GAAP diluted EPS is expected to be in the range of $3.65 to $3.75, up from its previous estimate of $3.60 to $3.70, and non-GAAP diluted EPS is expected to be in the range of $4.25 to $4.35, up from its previous estimate of $4.20 to $4.30. Full fiscal year 2010 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $0.60 per share, related primarily to the amortization of purchased intangibles, restructuring charges and acquisition-related charges. These estimates for both the first fiscal quarter and full fiscal year of 2010 do not reflect the potential impact of the acquisition of 3Com Corporation that HP announced today.

HP is issuing this preliminary earnings announcement to facilitate communications with investors regarding today's announcement that HP has entered into a definitive agreement to acquire 3Com Corporation.

Earnings announcement date

HP is scheduled to release its final results for the fourth fiscal quarter on Monday, Nov. 23, with a conference call scheduled for 5 p.m. ET/2 p.m. PT to provide additional details. An audio webcast of the conference call will be available at www.hp.com/investor/q42009webcast. A replay of the audio webcast will be available at the same website shortly after the call.

Source: HP