HP Posts $659 Million Second-Quarter Profit

 
 
By Jeffrey Burt  |  Posted 2003-05-20 Email Print this article Print
 
 
 
 
 
 
 

HP saw a $100 million jump in revenue over the previous quarter, but a $62 million drop in earnings over the previous three months.

Hewlett-Packard Co. earned $659 million on $18 billion in revenue for the second quarter, fueled in large part by its PC group and reliable printing division. The numbers represent a $100 million jump in revenue over the previous quarter, and a $62 million drop in earnings over the previous three months. However, it more than doubled the $252 million the Palo Alto, Calif., company saw in the same period last year, the final quarter before it acquired Compaq Computer Corp. In a conference call with analysts and reporters on Tuesday, Chairman and CEO Carly Fiorina said that the companys focus now was on building the business rather than absorbing Compaq.
"It has been an exciting and eventful year, and Im proud of the progress weve made," Fiorina said. "We still have a lot to do, but I feel confident that HP is no longer an integration story."
For the quarter ending April 30, HPs Personal Systems Group—which includes such devices as desktop PCs and laptops—made $21 million in profit on $5.1 billion in revenue. Fiorina said the gains made on the commercial side of the ledger were offset by seasonal weakness in the consumer business. The Imaging and Printing Group generated $5.5 billion in revenue, a 13 percent jump over the same period last year, but down 1 percent from the first quarter. HPs Services Group garnered $3 billion in revenue, a 2 percent jump from the first quarter, while the Enterprise Systems Group—which includes servers and storage—lost $7 million, a significant drop from the $83 million it lost in the first quarter. Fiorina said the revenues generated by several key customer wins—including the $3 billion deal with Proctor & Gamble Co.—will start appearing on HPs books in the fourth quarter.
The earnings announcement also comes less than three weeks after HP announced it was reorganizing the enterprise group, realigning the three hardware divisions into a single unit and more closely aligning it with the services group. Fiorina said she expects the group to be profitable in the second half of the year. The Enterprise Systems Group also is playing a key role in the Adaptive Enterprise strategy Fiorina announced May 6, an initiative wrapping hardware, software and services designed to make customers IT infrastructure more flexible and more aligned with business demands. Looking forward, HP officials said they expect to generate about $36.4 billion in revenue in the second half of the year.
 
 
 
 
 
 
 
 
 
 
 

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