HP Q4 revenue up, profits fall on layoff charges
It raised the number of employees let go in a restructuring plan to 15,300
Hewlett-Packard Co. today reported that its fourth-quarter revenue rose on strong growth in PC and server shipments, but it said restructuring charges and a decline in revenue from consumer printers hurt its profitability for the quarter.
"[The results] reflect good execution across our businesses, with solid revenue growth, good cost control and margin expansion in many key areas," said CEO Mark Hurd, on a conference call with reporters after the release of HP's earnings.
Revenue was $22.9 billion, up 7% from revenue of $21.4 billion in last year's fourth quarter and ahead of analyst estimates of $22.8 billion compiled by Thomson First Call. Revenue from storage and servers was up 10%, while revenue from the company's PC group was up 9%.
HP's fourth-quarter net income, under generally accepted accounting principles (GAAP), was $416 million, down 62% from net income of $1.1 billion in the same period last year. The net income posted reflects $1.1 billion in charges related to a broad restructuring program put in place by HP management in July and other factors. Excluding those charges, net income for the quarter, which ended Oct. 31, was $1.5 billion. That compares with net income, excluding charges, of $1.2 billion in the same period last year.
HP has increased the number of layoffs it announced as part of its restructuring plan to 15,300, said Bob Wayman, HP's chief financial officer. The company had originally expected to cut 14,500 jobs but saw the need for additional layoffs as it proceeded with its plan.
The majority of the cost savings that HP cited as the catalyst for the layoffs won't kick in until the company's next fiscal year, as all of the affected employees leave the company, Wayman said.
On the product side, the Enterprise Storage and Servers (ESS) group was led by a 12% increase in revenue generated by HP's servers based on Intel Corp.'s Xeon processors and Advanced Micro Devices Inc.'s Opteron processors. Blade server revenue was up 65%, while revenue from HP's Integrity servers was up 70%, Hurd said. The Palo Alto, Calif.-based company's storage business also improved, posting 17% growth in revenue.
Overall, the ESS group recorded $4.5 billion in revenue and an operating profit of $405 million. The profitability of the group has swayed back and forth in recent years, but for this quarter, operating profit was up from $100 million last year.
HP's PC group was led by the performance of its notebook products, which produced a 23% improvement in revenue over the past year. Desktop revenue increased by only 1%. The entire group recorded
- Best iPhone, iPad Business Apps for 2014
- 14 Tech Conventions You Should Attend in 2014
- 10 Desktop Apps to Power Your Windows PC
- How to Add New Job Skills Without Going Back to School
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
Something-something “LASER” something-something-something.
The MtGox Bitcoin exchange is bankrupt. Not a huge surprise, but insiders are also alleging chronic incompetence within the company, flowing from the CEO, Mark Karpeles. Supposed hackers have also leaked some PHP code that appears to substantiate those allegations. But could it all be an elaborate ruse to steal customers'
MtGox Co., Ltd. is now aiming for "civil rehabilitation" in a Tokyo District Court (similar to Chapter 11 bankruptcy protection in the U.S.).
In IT Blogwatch, bloggers release the frickin’ ill-tempered, mutated sea bass.
- IT Certification Study Tips
- Register for this Computerworld Insider Study Tip guide and gain access to hundreds of premium content articles, cheat sheets, product reviews and more.
- Changing the Way Government Works: Four Technology Trends that Drive Down Costs and Increase Productivity
- This paper discusses four technology-based approaches to improving processes and increasing
productivity while driving down department and agency costs.
- Accelerating Speed to Market in the Highly Competitive Automotive Industry
- This White Paper discusses how an Enterprise Project Portfolio Management solution optimizes project analysis, management, reporting and risk mitigation processes to accelerate new...
- ERP in the Cloud and the Modern Business
- View IDC's White Paper, to review IDC CloudTrack Survey findings, gain expert insight into the challenges and opportunities the cloud presents, and determine...
- Financial Security: What smaller Institutions can learn from DDoS attacks on big banks
- Since last fall, several waves of distributed denial of service (DDoS) attacks have targeted major players in the U.S. banking industry. JPMorgan Chase,...
- Red Hat Enterprise Linux - The Original Cloud Operating System
- Linux adoption is growing against a number of measures, such as the
number of supercomputers that run Linux and the size of the contributing...
All Financial IT White Papers
- Webinar: Building a Big Data solution that's production-ready Big data solutions are no longer just a nice-to-have.
- Meg Whitman presents Unlocking IT with Big Data During this Web Event you will hear Meg Whitman, President and CEO, HP discuss HAVEn - the #1 Big Data platform, as well...
- The New Way to Work Knowledge Vault This Knowledge Vault focuses on how, in today's increasingly virtual world, it's more important than ever to engage deeply with employees, suppliers, partners,...
- Getting Ready for BlackBerry Enterprise Service 10.2 Find out how BlackBerry® Enterprise Service 10 helps organizations address the full spectrum of EMM challenges, while balancing the needs of both the...
- Containerization Options: How to Choose the Best DLP Solution for Your Organization This webcast outlines a framework for making the right choice when it comes to containerization approaches, along with the pros and cons of...
- All Financial IT Webcasts