Business

    - Net revenue of $27.5 billion, down 2% from the prior year and up 4% in constant currency

    - GAAP operating profit down 14% to $2.2 billion; GAAP earnings per share $0.67, down from $0.80 a year earlier

    - Non-GAAP operating profit up 8% to $3.0 billion; non-GAAP earnings per share $0.91, up from $0.86 a year earlier

    - Cash flow from operations of $3.9 billion, up 15% from the prior year

    - Record Services profit of $1.3 billion

HP today announced financial results for its third fiscal quarter ended July 31, 2009, with net revenue of $27.5 billion, down 2% from a year earlier and up 4% when adjusted for the effects of currency.

In the third quarter, GAAP operating profit was $2.2 billion and GAAP diluted earnings per share (EPS) was $0.67, down from $0.80 in the prior-year period. Non-GAAP operating profit was $3.0 billion, with non-GAAP diluted EPS of $0.91, up from $0.86 in the prior-year period. Non-GAAP financial information excludes $568 million of adjustments on an after-tax basis, or $0.24 per diluted share, related primarily to amortization of purchased intangible assets, restructuring charges and acquisition-related charges.

“HP’s performance this quarter is a result of our strong business portfolio, efficient cost structure and scale. We made positive gains in extending our market leadership in key segments and strengthening our competitive position,” said Mark Hurd, HP chairman and chief executive officer. “Business is stabilizing, and we are confident that HP will be an early beneficiary of an economic turnaround and will continue to outperform when conditions improve.”
                                               
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 reflect year-over-year comparisons.

“Record profit in Services, double-digit revenue growth in China, and solid cash flow demonstrate HP’s ability to execute,” said Cathie Lesjak, HP executive vice president and chief financial officer. “We are investing for the future and executing operational efficiencies with the goal of driving long-term, profitable growth.”

Revenue grew 8% in the Americas to $12.6 billion. Revenue declined 12% in Europe, the Middle East and Africa and 4% in Asia Pacific to $9.9 billion and $5.0 billion, respectively. When adjusted for the effects of currency, revenue grew 11% in the Americas while declining 2% in Europe, the Middle East and Africa while Asia Pacific was flat. Revenue from outside of the United States in the third quarter accounted for 62% of total revenue, with revenue in the BRIC countries (Brazil, Russia, India and China) declining 6% over the prior-year period while accounting for 10% of total HP revenue.

Services
Services revenue increased 93% to $8.5 billion due primarily to the EDS acquisition. Infrastructure Technology Outsourcing posted revenue of $3.9 billion while Technology Services, Application Services and Business Process Outsourcing posted revenue of $2.4 billion, $1.4 billion and $711 million, respectively. Operating profit was $1.3 billion, or 15.2% of revenue, up from $567 million, or 12.9% of revenue, in the prior-year period. The EDS integration is tracking ahead of plan.

Enterprise Storage and Servers

Enterprise Storage and Servers (ESS) reported total revenue of $3.7 billion, down 23%. Storage revenue declined 21%, with the midrange EVA product line down 23%. Industry Standard Server revenue declined 21% and Business Critical Systems revenue declined 30%, while ESS blade revenue was down 14%. Operating profit was $356 million, or 9.7% of revenue, down from $544 million, or 11.5% of revenue, in the prior-year period.

HP Software

HP Software revenue declined 22% to $847 million. Business Technology Optimization declined 22%, and Other Software revenue declined 23%. Operating profit was $153 million, or 18.1% of revenue, up from $135 million, or 12.4% of revenue, in the prior-year period.

Personal Systems Group

Personal Systems Group (PSG) posted an increase of unit shipments of 2% and maintained the leading market position in PCs worldwide. PSG revenue declined 18% to $8.4 billion. Notebook revenue for the quarter was down 10%, while Desktop revenue declined 26%. Commercial client revenue was down 22%, while Consumer client revenue decreased 13%. Operating profit was $386 million, or 4.6% of revenue, down from $587 million, or 5.7% of revenue, in the prior-year period.

Imaging and Printing Group

Imaging and Printing Group (IPG) revenue declined 20% to $5.7 billion. Supplies revenue was down 13% due in part to continued channel inventory realignment, while Commercial hardware revenue and Consumer hardware revenue declined 37% and 21%, respectively. Printer unit shipments decreased 23%, with Commercial printer hardware units down 42% and Consumer printer hardware units down 16%. Operating profit was $960 million, or 17.0% of revenue, versus $1.0 billion, or 14.8% of revenue, in the prior-year period.

HP Financial Services

HP Financial Services (HPFS) reported revenue of $670 million, down 1% from the prior-year period. Financing volume increased 12%, and net portfolio assets increased 6%. Operating margin was 7.9% of revenue, up from 7.5% in the prior-year period.

Asset management

HP generated $3.9 billion in cash flow from operations for the third quarter. Inventory ended the quarter at $5.9 billion, down 10 days. Accounts receivable of $14.7 billion was up 4 days. Accounts payable ended the quarter at $12.8 billion, down 7 days. HP’s dividend payment of $0.08 per share in the third quarter resulted in cash usage of $191 million. HP utilized $999 million of cash during the third quarter to repurchase approximately 28 million shares of common stock in the open market. HP exited the quarter with $13.7 billion in gross cash.

Outlook

HP expects fourth quarter FY09 revenue to be up approximately 8% sequentially. Fourth quarter FY09 non-GAAP diluted EPS is expected to be approximately $1.12. Fourth quarter FY09 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $0.15 per share, related primarily to the amortization of purchased intangibles, restructuring charges and acquisition-related charges. On a GAAP basis, fourth quarter FY09 diluted EPS is expected to be approximately $0.97.

For the full year 2009, HP expects revenue and earnings to be in-line with the mid-point of the outlook range provided on May 19, 2009.

More information on HP’s quarterly earnings, including additional financial analysis and an earnings overview presentation, is available on HP’s Investor Relations website at www.hp.com/investor/home

HP today announced that it will be showing an addition to its range of large format printers on its stand, 9.E.082 at VISCOM Sign España, 22-24 October, Feria de Madrid, IFEMA.

At the show HP will be demonstrating its latest large format printer, which will drive change in the industry and allow Print Service Providers (PSPs) to differentiate themselves.

Other stand highlights include:

- The HP Scitex FB950 Printer - 2.5m hybrid UV printer providing consistent high-quality POP/POS, trade show and event signage on a wide range of rigid or flexible media at high speeds of up to 80m2/hr in billboard mode

- The HP Designjet L65500 Printer - the first of a new category of large-format signage printers with HP Latex Inks that reduce the impact of printing on the environment and offer broad outdoor and indoor application versatility, while delivering quality and high productivity with no drying time needed and at print speeds of up to 79m²/hr (for outdoor) and 34m²/hr (for indoor)

- The HP Designjet Z6100 Printer series - aqueous printers with an embedded spectrophotometer available in 42" and 60" models delivering vivid, high-impact prints at high print speeds. The series is ideal for indoor and short-term outdoor banners and large format applications such as posters, photos and fine art prints, drawings, maps and renders.

- The HP Designjet Z3200 Photo Printer is the perfect printing solution for graphic designers, photo and fine art print service providers, commercial printers and photographers. It enables easy calibration and profiling with an embedded X-Rite spectrophotometer, and features an expanded colour gamut with 12 HP Vivera pigment inks and HP 73 Chromatic Red. The HP Designjet Z3200 Photo Printer is ideal for producing gallery quality, black-and-white and colour photographs, art enlargements, large-format designs and high-accuracy proofs.

- HP Indigo application area, where PSPs will be able to see sample prints and speak to HP staff who will advise them on the best solutions for their business.

"HP's latest graphic solutions will allow our customers to continue to differentiate their businesses," said Santi Morera, vice president and general manager, Large Format Printing Business, Imaging and Printing Group, HP. "PSPs now have the widest ever portfolio of HP printers to choose from, allowing them to enter new market segments with confidence," said Morera.

For more information please visit http://www.viscomspain.com

News from some of the businesses that will be exhibiting at the forthcoming Sign & Digital Ireland show, which will be held at RDS Dublin on the 23rd and 24th of September...

The Danwood Group - Looking forward to the Print Ireland Show...

Xerox UK Limited and The Danwood Group Limited announce a strategic partnership for the UK and Ireland
“We are looking forward to the Print Ireland show as it will be the first show we have attended since our groundbreaking deal with Xerox. There will be many customers who would prefer to have a solution from more than one manufacturer as long as they have got a single source for all service, backup and administration. So we are looking forward to being able to demonstrate both Konica Minolta and Xerox equipment and have the opportunity to explain to visitors about the service and expertise Danwood can offer.” Peter Kelly, Sales Director, Danwood Group, Ireland


Ricoh – showcase professional print solutions …

Visitors to the Ricoh stand (E17) at Print Ireland will be able to experience new digital print solutions that will help them win business in the present economic climate, while reducing costs and increasing productivity.
Ricoh will showcase its professional print solutions, using the very latest workflow software together with the innovative Pro C900s, a 90ppm digital colour press and the Pro 1357EX high-volume black & white system.


M J Flood – Excited about exhibiting at Print Ireland 09 for the first time

MJ Flood are pleased to announce that they will be launching the New Develop D1200 B/W Digital Production Printing System at Print Ireland ’09.

IBS Konica Minolta- choose Print Ireland to launch two products…

Print Ireland exhibition will showcase two of the latest innovative products that Konica Minolta have launched to the very high volume segment, these are the Konica Minolta 1200 and 2500 production Black and White Digital Printers. The show will also have the already successful Konica Minolta 6501Colour Production system and a number of additional products, which compliment the range. IBS are confident that the current product range will provide innovative solutions for a very demanding Irish Print market and look forward to be the main attraction at the forthcoming show in the RDS in September


digtalprint.ie - Maximise your profit

Visit the digitalprint.ie stand to find out how you can use digital print technology to produce high profit jobs such as photobooks, personalised calenders, personalised bookmarkers and more.


WRH Marketing UK Provides Mailroom Solution at Print Ireland…

Visitors to Stand C2 of WRH Marketing UK Ltd at the forthcoming Print Ireland exhibition, 23rd – 24th September, Dublin, will be able to learn about the latest developments with MemoStick, an interactive sales promotion tool for newspapers and magazines. The company will show JobStrap, one of a range of products within the Jobfolio series of post press finishing equipment, which enables WRH Marketing to provide stand alone components or a complete packaging line within a customer’s mailroom.


Robert Horne – Reinforce offering at Sign & Digital Ireland…

The Robert Horne Groups main objective at Sign & Digital is to reinforce their offering to the Sign & Display producer, explaining the opportunity for profit from their range. Promoting both the Avery range of Digital and Sign Making Vinyl’s, the Roland range of wide format digital printers and Seal laminators, together with a whole host of market leading brands including Avery films, Dibond ACM, Perspex, Dtec digital print media and Foamalite PVC.


Roland DG Ireland - Announces The Launch Of New Products At Sign And Digital Ireland

This is an exciting time for Roland. Our continuous investment in research and development has meant that we can keep pushing the boundaries of wide format technology, and give customers what they need to make a success of their own businesses.

Visitors will be able to browse Roland’s extensive product range, both new and old. Taking centre stage alongside the new products will be Roland’s VersaCAMM series, the world’s most popular print&cut wide format machine. Supporting Roland’s wide format portfolio will be a selection of its engravers as well as a range of applications on display, providing users with new ideas and inspiration.


Dennis D Evans – set to take Sign & Digital Ireland by storm

Key Irish reseller for Mimaki, Dennis D Evans & Co Ltd looks set to take Sign & Digital Ireland by storm with several new products being shown at a major Irish exhibition for the first time. With a stand containing a broad range of Mimaki’s capabilities, the presence of the award winning UJV-160 hybrid roll-to-roll / flatbed printer should be a major coup for the show. Also on DDE’s stand is a selection of Mimaki’s solvent print and cut products.


BÖWE BELL + HOWELL - announced a strategic agreement…

BÖWE BELL + HOWELL - announced a strategic agreement to integrate their JETVision® software technology into the Lasermax Roll Systems' WebVision™ product line. Both companies are already leading providers of print integrity and quality inspection systems and the combination of these proven technologies will broaden the capabilities of future WebVision products.


William Smith – Providing plenty of opportunities…

Fully interactive demos on the stand of the RollsRoller Flatbed Applicator, 3Ms new Scotchcal IJ8624 Film for textured surfaces, vehicle wrapping with 3Ms IJ380 and 2=3Ms Scotchcal Series 85 car wrap.


YES – Auto pre-treating and curing at last…

Nottinghamshire based Your Embroidery Services Ltd. have launched the next step in direct to garment ink jet printing with The PreJet which is not actually a printer but an automated way of applying the pre-treat needed to print onto coloured fabrics. The system couldn’t be easier. Using the same design as for the print you generate a pre-treat pattern using the special software. Once the PreJet has completed its run you cure the garment and then transfer it, platen and all, to the printer. Simple.


Trimwel – Quality products, speedy service…

”We are looking forward to the Show in the RDS to introduce our new Triangle Inks & Reflekton Reflective range that we are proud to be distributors for along with Metamark and 3M Vinyl range. We have found over the years that the show gets better and better and we always get to introduce ourselves to many new customers.”

DWS Supplies – come and see the launch of the new plotter cutter range…

Distributor in Ireland for Siser, DWS have launched a new range of quality plotter cutters which are very competitively priced. Onsite you can come and see demos such as heat transfer materials which includes the dimante range of designs onto clothing as well as the ribbon printer.


The Magic Touch – showcasing their latest technology at Sigin & Digital Ireland / Print Ireland…

TheMagicTouch this year will show the latest in both toner and sublimation based image transfer technology. This will include a host of new applications such as printing full colour on dark nylon fabrics, flip-flops and a new range of Unibind covers and books.


Geometrics on display at Sign & Digital Ireland…

GEOMETRICS in conjunction with DIGITALL will be displaying the NAZDAR range of inks at the upcoming Sign & Digital Ireland / Print Ireland Show. Customers will be able to see first hand the Nazdar ink working on the Roland Pro3. With a bulk feed system ink is bought by the liter bottle at considerable savings. Should customers wish to bring their own files to check for colour matching this will be possible. Currently there are over 40 sites running Nazdar ink in Ireland.


Nova Chrome - comprehensive range of dye sublimation equipment at Sign & Digital Ireland…

At this year’s Sign & Digital Ireland, Nova Chrome UK will be displaying their comprehensive range of dye sublimation equipment and rapidly expanding selection of imprintable products, as well as holding demonstrations throughout the show and offering advice on how to get the best from this unique and exciting transfer technology, and the benefits of incorporating a system into your existing business. Highlights include the new line of Ricoh printers, as well as new sublimation bags, ceramic items and much more besides.


Precision Images - Specialist areas...

At the show precision images will be displaying the following of there core products and services Apple Computer Solutions, Wide Format Imaging, Data Storage, Consumables and Precision Image also supplies all commonly used software for Apple Macintosh computers.


Gess Ltd - Displaying bespoke systems and fixing methods for installing large PVC/ Mesh images..

We are a well established sign installation company which has been installing a huge variety of images worldwide for the past 14 years. We have developed with the help of structural engineers our own variety of bespoke systems and fixing methods to enable us to install large PVC/mesh images totaling thousands of square metres to scaffold/steel work structures, brick/stonework buildings and largely exposed images which are affected by heavy winds.


AXYZ International - Demonstration 4010 Twin Head router as part of 4000 series...

The AXYZ 4010 Twin Head router to be demonstrated is part of the 4000 series that is renowned for its capabilities when processing 8 x 4 sheets of material. It will effectively handle all kinds of both rigid and flexible materials used in sign making and digital printing and has a work area of 3,048mm (length) x 1,524mm (width). The addition of the ICS facility greatly extends the ability of AXYZ router owners to cost-effectively engage with the cut-to-print sector of the market and this has been further enhanced by the introduction of a tangential oscillating knife that can be used to process both flexible and semi-rigid media used for digital printing. Typically, this includes vinyl, foamed sheet, corrugated plastic, cardboard, rubber and leather up to a thickness of 40mm.

Applelec - Launch their Product Guide...

At Sign Ireland Applelec Sign Components will be launching their new product catalogue. This is an exhaustive reference tool for each and every product we offer. Visit stand A6 to find out more.
 

Clinical Print Finishers - offering the facility to produce 'pocket information cards'

Miniature finishing specialists Clinical Print Finishers (CPF) are now offering the facility to produce "pocket information cards" with the installation of 2 bespoke machines. The Leicester-based company has installed the machines, from undisclosed suppliers, to fully automate the adhesive attaching of multi-folded leaflets into 2pp, 4pp or 6pp covers.CPF production manager Alan Pickles said that this type of product is already being utilized by many blue chip companies as a carrier for public information such as maps, as well as retail and marketing applications.

PLUS

Adobe…

FREE sessions on the new CS4. The Adobe Theatre will be running FREE sessions on NEW Adobe Creative Suite 4, as well as Apple demos.

Sign & Digital Ireland / Print Ireland seminar theatre…

Come and see the likes of Vision in Print, The Print Packaging Forum and Robert Horne hosting seminars plus many more.

For further information and to pre-register click here.

Xerox Corporation announced today second-quarter 2009 results that include earnings per share of 16 cents and $609 million in operating cash flow.

"During the second quarter, we exceeded our expectations for EPS and cash flow, reflecting our disciplined approach to operational improvements across the board," said Ursula M. Burns, Xerox chief executive officer. "Gross margin and cash are up; expenses are down – all key factors to our strong financial position that is serving us well during this tough economy.

"At the same time, our industry continues to face challenges from the decline in enterprise spending on technology. We have seen sequential improvement with revenue up 5 percent from the first quarter. However, assuming current economic conditions persist, we expect revenue will remain under pressure during the balance of this year," she added.

Total revenue of $3.7 billion was down 18 percent from second-quarter 2008 including a 5 point negative impact from currency. Post-sale and financing revenue was down 14 percent, or 8 percent in constant currency. Equipment sale revenue declined 29 percent, or 25 percent in constant currency. The revenue decline is largely due to continued spending constraints in the overall business environment, which is delaying purchasing decisions for new technology and slowing demand for document-related supplies.

"In this cost-conscious environment, our clients are responding to Xerox's managed print services that reduce document costs by up to 30 percent, and to the value we provide through innovation like the Xerox ColorQube solid ink system that cuts the cost of color pages by up to 62 percent," noted Burns. "Xerox's value proposition along with the breadth of our offerings for businesses of any size, expanded distribution, and global account management gives us confidence in the strength of our long-term competitive position."

Second-quarter operating cash flow of $609 million was $167 million higher than prior year driven by working capital improvements. Following this strong performance, the company raised its expectations for full-year operating cash flow to $1.5 billion from $1.3 billion. Xerox ended the second quarter with a cash balance of $1.2 billion, and total debt was down $347 million through the first half of the year. Xerox plans to reduce overall debt by $1 billion this year.

Gross margin was 40.2 percent in the second quarter, an increase of one point from the prior year and up 1.3 points from the first quarter of this year. Second-quarter selling, administrative and general (SAG) expenses were down year over year by $157 million and SAG as a percent of revenue was 27.2 percent.

Xerox expects third-quarter 2009 earnings per share in the range of 10 cents to 12 cents, delivering full-year 2009 earnings per share of 50 cents to 55 cents.

The city of Milan will provide the backdrop for the next stop of Ipex’s global marketing tour on Wednesday, 23rd September when Ricoh Italia will host the seventh leg of the international roadshow, from 10:00 to 15:00.

Designed to help existing and potential exhibitors draw as many visitors as possible to their stands at the international Ipex 2010 exhibition, the event will reveal the variety of free marketing tools available for use in pre-show marketing campaigns. Attendees will also find out how they can take advantage of sponsorship opportunities to further raise their profile at the show.

They can also discover how to reduce the cost of participating at the Ipex exhibition with the ‘Recession Buster’, an initiative which includes a range of cost-saving packages from stand build, rigging, production waste handling and storage, to budget accommodation options.

The Ipex team will provide the latest update on planned visitor features, event initiatives and the Ipex 2010 global marketing campaign, as well as offer further information on travel and logistics.

Nick Craig Waller, Ipex 2010 Marketing Director, says: “It’s less than a year until Ipex opens its door to visitors from around the globe, so it’s important for companies to put their marketing plans together now and tell people about their presence at Ipex. The roadshow provides an ideal place to start because we can give them an overview of the event, pass on experience from previous Ipex exhibitions, and guide them through all the central resources available.”

In addition to help and advice from the Ipex team, journalists from leading Italian graphic arts publications will talk about the latest market trends and show how exhibitors can produce more effective information for trade journals. Representatives from the key Italian graphic arts associations will also be on hand to address any questions relating to the event.

As one of the top ten exhibitors at the upcoming Ipex exhibition, digital printing solutions provider, Ricoh, will provide an insight into how it is maximizing its exhibition activities to further interact with its customers. Graham Moore, Director Production Printing, Ricoh Europe PLC, says, “Ipex 2010 is the ideal platform for the Ricoh Group to prove its commitment to the production printing market and to demonstrate its focused solutions for corporate and commercial printers. It’s an important international event for us as we continue to expand our global presence in this market. As this will be our first time at Ipex, we’re extremely pleased to be so closely involved during the preparation stages and to be hosting this interactive and informative event at our offices in Milan. I’ve personally attended some of the previous events in France and Germany and know how valuable the roadshow is for confirmed and prospective exhibitors.”

Nick Craig Waller adds, “So far, we’ve held roadshows in Belgium, Germany, China, France, Japan and the UK, and the feedback has been extremely positive. I’ve no doubt that attendees in Italy will find this day just as invaluable in their preparations for Ipex 2010.”

Velmex Distribution, based in Mitcham Surrey, announced today their strategic relationship with EFI to boost their product offerings into the large format channel. EFI’s prepress and production products provide an end to end solution when used with the recently Fogra certified Canon iPF5100 or iPF6100 products.  Velmex, the leading Canon UK large format distributor now have a Fogra certified engineer who can calibrate and install a Colorproof XF system that produces an “EFI-Fogra cert” compliant proof. By passing this certification Velmex are now able to offer a full chain of Fogra compliant products. The importance of this solution means Velmex are now able to distribute the total printing package to the reseller channel, and offer their customers a full EFI – Fogra certification on their printing systems once calibrated.  Daniel Judge, Product Specialist for Velmex distribution said, “It gives us the opportunity to provide a further value added service to our resellers, allowing them to sell our solutions with the knowledge we can provide the qualification to back it up.”

Whilst EFI’s product range is vast the concentration for Velmex is around three products, EFI’s Colorproof –XF, Colorproof – Express and for production environments the EFI Fiery XF. “Our aim was to provide quality products that gave our customers a good range to choose from, whatever their requirement” says Judge, “These products provide the perfect balance to our portfolio, and our EFI Fogra Certification means we can now provide a full end to end solution or any element within that.”    EFI, a company with a pedigree in rip production since 1989, are based in Foster City in the Silicon Valley, they have 23 offices worldwide and are leaders in the digital print industry.  EFI together with Tecco and Fogra set up the “EFI Fogra cert” initiative for compliant proofs to guarantee high quality and reliably printing, it means that resellers, consultants, printing houses and prepress business and their customers can understand what the standardisation means and receive all the benefits from it. As an EFI Fogra certified engineer Judge can go onto a customer’s site and using the approved EFI Colorproof XF and Canon iPF5100 or iPF6100 printer produce a proof card to be submitted to Fogra so the customer can receive Fogra certification on their printing system.  “This opens up sales avenues for our channel” says Judge, “the feedback we’ve had from our resellers is excellent and we have all products and upgrades now in stock and we’re looking forward to a long term relationship with EFI to help take us further into the proofing market.”