Hewlett-Packard Co., still undergoing the massive task of absorbing Compaq Computer Corp., on Wednesday reported revenue of $18 billion and net income of $390 million for the fourth quarter of fiscal year 2002.
Revenue for the Palo Alto, Calif., company climbed 9 percent from the previous quarter, its first as a combined company since the $18.5 billion deal was completed in May, and dropped less than $100 million compared with the combined numbers from both companies in the fourth quarter 2001.
In the same quarter last year, just a month after the controversial acquisition was announced, HP and Compaq losses combined were $505 million.
Chairman and CEO Carly Fiorina said during a conference call that the quarterly numbers continue to validate the buyout of Compaq.
"We are delivering on the promise of the merger," Fiorina said. "We continue to see improved cost structure, improved profitability, improved competitive position and improved cash flow."
HP officials said the companys prized business unit, Imaging and Printing, saw revenues in the quarter ended Oct. 31 grow to $5.6 billion, an 18 percent jump over the previous quarter.
The Personal Systems Group saw revenue grow 6 percent over the previous quarter, to $5.1 billion, and the Services unit increased revenue 4 percent, to $3.1 billion.
The Enterprise Systems division lost $152 million, or $270 million less than the previous quarter.
HP also said that cost savings related to the merger were $651 million, or 30 percent above the companys plan. About $257 million of that came from cutting the workforce by 12,500 jobs, with another $243 million from direct and indirect savings and $151 million from other savings, such as marketing program cuts and facilities closures.
The company said it had expected to save $500 million and cut 10,000 jobs by the end of the quarter. Fiorina said HP will cut a total of 17,900 in connection with the merger.
Despite the numbers, Fiorina said she didnt see any improvement in IT spending in the near future and that "were not counting on a strong holiday season."
Still, the company said it expects to garner $18.4 billion in revenue for the first quarter 2003, and that it would increase spending for advertising in the first half of 2003.