12 Jul 2020

HP reports 8% increase in revenue

 

Hp Logo

HP today announced financial results for its first fiscal quarter ended Jan. 31, 2010, with net revenue of $31.2 billion, up 8% from a year earlier and up 5% when adjusted for the effects of currency.

In the first quarter, GAAP diluted earnings per share (EPS) was $0.96, up from $0.75 in the prior-year period. Non-GAAP EPS was $1.10, up from $0.93 in the prior-year period. Non-GAAP financial information excludes after-tax costs of approximately $0.14 per share and $0.18 per share in the first quarter of fiscal 2010 and 2009, respectively, related primarily to the amortization of purchased intangibles, restructuring charges and acquisition-related charges.

"HP is well-positioned to outperform the market," said Mark Hurd, HP chairman and chief executive officer. "The strength of our portfolio, leaner cost structure and accelerating market momentum give us the confidence to raise our full-year outlook."

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.

First quarter revenue was up 9% in the Americas to $13.6 billion. Revenue was up 1% in Europe, the Middle East and Africa and 26% in Asia Pacific to $12.1 billion and $5.4 billion, respectively. When adjusted for the effects of currency, revenue was up 7% in the Americas, down 1% in Europe, the Middle East and Africa and up 19% in Asia Pacific. Revenue from outside of the United States in the first quarter accounted for 65% of total HP revenue, with revenue in the BRIC countries (Brazil, Russia, India and China) increasing 41% over the prior-year period while accounting for 10% of total HP revenue.

"Solid performance across the business and disciplined execution on our cost initiatives contributed to strong growth in cash flow and EPS," said Cathie Lesjak, HP executive vice president and chief financial officer. "We will continue to invest for growth and leverage our scale and global position to take advantage of an improving demand environment."

Enterprise Storage and Servers

Enterprise Storage and Servers (ESS) reported total revenue of $4.4 billion, up 11%. Industry Standard Server revenue increased 27% while Storage revenue declined 3% with the midrange EVA product line down 5%. Business Critical Systems revenue declined 22%, while ESS blade revenue was up 24%. Operating profit was $552 million, or 12.6% of revenue, up from $406 million, or 10.3% of revenue, in the prior-year period.

Imaging and Printing Group

Imaging and Printing Group (IPG) revenue increased 4% to $6.2 billion. Supplies revenue was up 1%, up 4% in constant currency, while Commercial hardware revenue and Consumer hardware revenue increased 4% and 21%, respectively. Printer unit shipments increased 16%, with Commercial printer hardware units up 11% and Consumer printer hardware units up 18%. Operating profit was $1.1 billion, or 17.0% of revenue, versus $1.1 billion, or 18.5% of revenue, in the prior-year period.

Personal Systems Group

Personal Systems Group (PSG) posted a 26% increase in unit shipments and maintained the leading market share position in PCs worldwide. PSG revenue increased 20% to $10.6 billion. Notebook revenue for the quarter was up 25%, while Desktop revenue increased 16%. Commercial client revenue was up 16%, while Consumer client revenue increased 26%. Operating profit was $530 million, or 5.0% of revenue, up from $436 million, or 5.0% of revenue, in the prior-year period.

Services

Services revenue decreased 1% to $8.7 billion. Infrastructure Technology Outsourcing revenue increased 2% to $3.9 billion. Technology Services revenue decreased 2% to $2.4 billion. Application Services posted revenue of $1.5 billion and Business Process Outsourcing posted revenue of $734 million down 8% and 3%, respectively. Operating profit was $1.4 billion, or 15.8% of revenue, up from $1.1 billion, or 12.9% of revenue, in the prior-year period.

HP Software

HP Software revenue was flat at $878 million. Business Technology Optimization revenue decreased 1% and Other Software revenue increased 1%. Operating profit was $167 million, or 19.0% of revenue, up from $140 million, or 15.9% of revenue, in the prior-year period.

HP Financial Services

HP Financial Services (HPFS) revenue increased 13% to $719 million. Financing volume increased 30%, and net portfolio assets increased 23%. Operating margin was 9.3% of revenue, up from 6.4% in the prior-year period.

Asset management

HP generated $2.4 billion in cash flow from operations for the first quarter. Inventory ended the quarter at $6.6 billion, down 6 days. Accounts receivable of $14.5 billion was down 4 days. Accounts payable ended the quarter at $13.6 billion, up 3 days. HP's dividend payment of $0.08 per share in the first quarter resulted in cash usage of $189 million. HP also utilized $2.7 billion of cash during the quarter to repurchase approximately 54 million shares of common stock in the open market. HP exited the quarter with $13.7 billion in gross cash.

 

Outlook

For the second quarter of fiscal 2010, HP expects revenue of approximately $29.4 billion to $29.7 billion, GAAP diluted EPS in the range of $0.89 to $0.91, and non-GAAP diluted EPS in the range of $1.03 to $1.05. Second quarter fiscal 2010 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $0.14 per share, related primarily to the amortization of purchased intangibles, restructuring charges and acquisition-related charges.

HP estimates full year fiscal 2010 revenue will be approximately $121.5 billion to $122.5 billion, up from its previous estimate of $118.0 billion to $119.0 billion. HP expects full year fiscal 2010 GAAP diluted EPS to be in the range of $3.79 to $3.86, up from its previous estimate of $3.65 to $3.75, and non-GAAP diluted EPS to be in the range of $4.37 to $4.44, up from its previous estimate of $4.25 to $4.35. Full year fiscal 2010 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $0.58 per share, related primarily to the amortization of purchased intangibles, restructuring charges and acquisition-related charges.

These estimates for both the second quarter and full year fiscal 2010 do not reflect the potential impact of the proposed acquisition of 3Com Corporation that HP announced on Nov. 11, 2009.

 

Océ and Konica Minolta end strategic alliance

 

Oce Logo

Océ N.V. and Konica Minolta Holdings Inc. have reviewed their existing strategic alliance in light of the public offer made by Canon Inc.

Initiated by Konica Minolta, the joint development activities for cutsheet monochrome and color output systems for the production market have been stopped.

In good mutual consultation, both companies have reached a new OEM sales agreement under which Konica Minolta will continue to supply its office printing systems to Océ, and both Konica Minolta and Océ will continue to supply cutsheet production printing systems to each other.

Also, both companies will continue to supply consumables and parts and offer after-sales services for products sold under their former and new OEM sales agreement to serve their customers.

 

Océ Shareholders Adopt Proposed Resolutions re Canon Offer

 

Oce Logo

Rokus van Iperen, Chairman of the Board of Executive Directors of Océ, today informed an Extraordinary General Meeting of Shareholders about the status of the published Offer by Canon Inc., via Canon Finance Netherlands B.V., for the shares of Océ N.V. made on 28 January 2010. Following the presentation by the Chairman of the Executive Board, an elaborate exchange of ideas took place with regard to several aspects of the Offer, including the offer price and future governance.

Furthermore, the following resolutions were adopted in connection with the Offer.

Approved resolutions

The meeting granted discharge and release to the resigning members of the Supervisory Board, under the condition precedent that the discharge and release will be effective on the Settlement Date, and therefore under the condition precedent that the Offer is declared unconditional.

Mr. T. Tanaka will be appointed as member of the Supervisory Board effective as per Settlement Date, and therefore under the condition precedent that the Offer is declared unconditional.

Mr. S. Liebman will be appointed as member of the Supervisory Board effective as per Settlement Date, and therefore under the condition precedent that the Offer is declared unconditional.

Mr. N. Eley will be appointed as member of the Supervisory Board effective as per Settlement Date, and therefore under the condition precedent that the Offer is declared unconditional.

Mr. J.M. van den Wall Bake will be appointed as member of the Supervisory Board effective as per Settlement Date, and therefore under the condition precedent that the Offer is declared unconditional.

The meeting approved the amendment of the Articles of Association, under the condition precedent that the Offer is declared unconditional.

The amendment of the Articles of Association is related to the following three main subjects:

 

  • elimination of the cumulative protective preference shares;
  • deletion of the transfer restriction re convertible cumulative financing preference shares; and
  • changes to corporate governance structure.

 

 

More information

The results of the voting at the meeting will be published at investor.oce.com before 19 February 2010. The minutes of the meeting will be available on that website not later than 12 May 2010.

 

Situation Vacant: Zund UK looking for Sales Demonstrator

Zund Uk Office

Sales Demonstrator Position

As part of Zund UK’s ongoing expansion, we are looking for an individual to fulfill the role of Sales Demonstrator. The scope of the role covers the demonstrating of equipment from the Zund portfolio of products whilst assisting the sales team with other related activities such as cutting trials, product developments, marketing, etc. Management of the demonstration facilities and systems is also covered by the position.

The successful applicant would ideally have an understanding of existing equipment; however this is not essential as training would be given. Knowledge of complimentary software products would also be beneficial i.e. Adobe Illustrator, Onyx, AutoCAD, etc. Although primarily based in St Albans, Herts, a limited amount of travelling may be required in relation to product training.

Remuneration package will be based on experience. Please send your C.V. to Karen Taylor at:

Zund Plotting Systems (UK) Ltd, Unit 1, Spring Valley Business Centre, Porters Wood, St Albans, Herts, AL3 6PD.

Tel No: 01727 833003

Two Sides Challenge 'Paper-Free is Better for the Environment' Claims

Twosides

Two Sides, the UK initiative to promote the responsible production and use of print and paper, and encourage its use as an attractive, practical and sustainable communications medium, today announced that it is actively challenging companies which use greenwash to mislead consumers regarding the environmental benefits of alternative media.

Two Sides is requesting that companies carefully consider their messages and the potentially misleading anti-print and paper statements that are being made such as: 'go paper-free and do your bit for the environment' or  'e-billing is more environmentally friendly than the traditional paper bill'.

"It is important, when companies promote their products and services, that they do not damage the Print and Paper industry and jeopardise the livelihood of the many thousands of people employed therein with possibly misleading statements," says Martyn Eustace, Two Sides Director. "We will react to misleading statements whenever they arise and we are engaging with major corporates and utilities. There has, so far, been a reluctance to discuss but I have recently detected a changing attitude and realization that the issues which we are raising deserve debate and consideration."

Through its continuous monitoring, Two Sides often notices a lack of adherence to CSR guidelines. CSR Europe is the leading European business network for corporate social responsibility and its Sustainable Marketing Guide states that 'Green' claims should be truthful, accurate and able to be substantiated and not make comparisons unless the comparison is relevant, clear and specific. "It is clearly wrong," says Eustace "to claim that a product or service, for example a switch to online communication, is 'better for the environment' or 'uses less energy' without supporting evidence."

The link between reducing the use of paper and helping the environment creates a false impression about the sustainability of print and paper. Paper is a renewable and recyclable product that, if responsibly produced and consumed, is an environmentally sustainable media. In Europe, where 93% of our paper comes from, the area of forest has grown by 30% since 1950 and is increasing at a rate of 1.5 million football pitches every year. The forestry and paper industries are major guardians of this precious and growing resource.

The belief that e-communication is more environmentally-friendly than print is generally unproven and there is a lack of life cycle data to support such claims. What is increasingly clear is that electronic communication, and in particular the energy requirements of the increasing worldwide network of servers which are necessary to store all the information needed for immediate access, has a significant and increasing carbon footprint. Electronic communication and document storage must be recognised as delivering efficiency but not necessarily greater sustainability. In the UK it has been suggested that PC's and servers may consume up to 50% of the country's energy requirements in the next 10 years.

As Martyn Eustace explains, "Whilst all the benefits of electronic communication are clear, and initiatives to reduce waste are to be encouraged, Two Sides is concerned that incorrect and damaging impressions are being given if alternative e-communication channels are promoted as 'green' or seek to gain credibility by purporting to aid sustainability at the expense of responsibly produced print. All channels have an environmental impact and print remains a vital and effective part of the modern marketing and communication mix. We are asking all those who use the environment as a means to encourage customers to switch from print to e-communication, largely to reduce costs, to re-examine their messages as it is certainly not proven that this results in a lower carbon footprint. In fact, considering all the environmental costs of electronic communication, print and paper may well be the environmentally sustainable way to communicate."

Canon Europe reveals initial results of study into impact of economic downturn on the printing industry

Mark Lawn Canon
 
  • Study reveals that many print service providers would not have survived the downturn without a digital printing capability. Survivors are emerging in a better shape to face the future
  • As the end of 2009 approached, printers were optimistic about the future
  • Printers who moved into wide format inkjet printing in particular thrived as they found a growing signage and display market
  • Redefinition of the Digital Printer’ is the third survey sponsored by Canon Europe and conducted by Professor Emeritus Frank Romano and a team of print media graduates from the Rochester Institute of Technology

 

Canon Europe, world leader in digital imaging solutions, today reveals the ‘top line’ trends uncovered by a survey of print service providers and industry commentators into the impact of the recession on the printing industry.

The ‘Redefinition of the Digital Printer’ survey, the third to be sponsored by Canon Europe and conducted by Professor Emeritus Frank Romano and a team of print media graduates from the Rochester Institute of Technology in the USA, provides a further snapshot of the state of the printing industry. The results of the previous Canon ‘Insight’ studies into the future of digital printing and into the CRD (Central Reprographic Department) market were published in May 2008 and May 2009 respectively.

For this third survey, Professor Romano’s team interviewed the largest sample to date, a total of 840 printers, 65.5% of whom were based in Western Europe. The sample included 383 of the 464 interviewed for the 2008 study, the remaining 81 having either merged or gone out of business.

The final analysis of the Redefinition of the Digital Printer’ survey is currently being completed and the results will be published in May 2010. The key findings of the survey demonstrate how important the adoption of digital printing has been to the survival of professional printers and how those emerging from the recession are likely to be better positioned to exploit future opportunities and overcome future challenges:

  1. In the last quarter of 2008, as marketers slashed print budgets, printers were forced to rethink every aspect of their business and to implement improved production methods to streamline staff and reduce costs. As print runs became much shorter, those who had implemented digital printing were well prepared for the shift. Those with only offset presses, and particularly those with older generation offset presses, were not geared up for it and were therefore not able to meet the changing demands. As printers acted to adapt, sales of digital machines consequently exceeded those of other presses during 2009. For example, the survey shows that while revenues from offset lithographic output declined by 18.1% in Western Europe during 2009 (compared with 2008), revenues from digital (toner and inkjet combined) output increased by a total of 27.2%.
  2. For the purposes of the survey, ‘digital printing’ included not only document printers, but also wide format inkjet, and it appears that those in wide format printing did particularly well during the economic downturn. In fact, 86% of respondents said that display printing on wide format printers had helped them to survive the downturn. Commercial printers, who had previously avoided wide format as too niche, now discovered a growing market for signage and other display products as well as new industrial market segments for printing on fabrics, canvas and other materials.
  3. One of the key elements to survival during the recession has been business leadership. Those companies leading the recovery demonstrated that, by focusing on key selected markets (where they could add value) and by providing multi-media services (to differentiate themselves from competitors), they could ensure the long-term future of the business
  4. Despite the earlier gloom, by the end of 2009 print service providers were reporting some clear optimism about 2010 and the future. This optimism could be founded on the fact that more than half of companies with a digital printing capability improved their revenue and profit in 2009 compared with 2008.

Mark Lawn, European Marketing Manager, Professional Print Solutions, comments: “As with the previous surveys, Canon’s sponsorship of the latest study reflects our ongoing commitment to the development of long-term relationships with our customers, helping them to make informed decisions about their future.

“After the challenges that the print industry has encountered over the past year, it is very encouraging to hear that printers are expressing optimism about their future for 2010. The research clearly shows that companies who are embracing digital print technology to deliver added value services to their customers are now better positioned to take advantage of an evolving market. Digital printing has become an essential element in any successful blended production environment and, at the speed with which the business environment has changed and continues to change, consideration of the adoption of a digital printing capability can no longer be optional for printers.

“If this renewed sense of optimism continues – and we firmly believe that it will – the industry is in for a very exciting Ipex 2010. The exhibition will provide an ideal opportunity for printers to research and consider different ways to take their businesses forward, and Canon’s focus at the show will be to inspire visitors to make that leap.”

With a view to encouraging printers to take an innovative approach to securing the long-term future of their businesses, Canon is today also launching a pan-European ‘Business Leap’ Competition (Please see relevant press release dated 9 February 2010). Inviting entrants to submit a formal business plan for a venture involving digital printing, the competition will illustrate the importance of compiling a comprehensive business case with a strong rationale for investment – crucial for any printer seeking access to finance. The winner will be awarded a fully configured Canon imageRUNNER ADVANCE C9070 PRO, allowing them to transform their business plan into a commercial reality.