Feeds

HP takes tax hit, but sales up

No nasty surprises

Bridging the IT gap between rising business demands and ageing tools

Hewlett Packard swallowed hard and took a tax adjustment of almost a billion dollars in its Q3 earnings announced today. HP's cash repatriation on foreign earnings will amount to $14 billion. The tax adjustment of $988 million was required by the American Jobs Creation Act.

Excluding the charge, however, HP would have recorded a net income of $1.06 billion on revenue of $20.8 billion, up 7 per cent and 9.9 per cent respectively from a year ago after currency adjustments.

Printing continues to be HP's powerhouse, bagging $5.9 billion of revenue and $771 million in operating profit. HP attributed the success to strong laser and multifunction shipments.

The PC business saw its revenues increase, too, recording an operating profit of $163 million on $6.4 billion in revenue. The margins continue to be razor thin, at 2.6 per cent, but that's up from a year ago.

Services profits fell slightly year-on-year to $256 million on income of $3.8 billion. And storage and servers reported $4 billion of income and an operating profit of $150 million.

Wintel and Linux server sales grew 28 per cent, storage sales grew 15 per cent, and enterprise hardware sales grew 7 per cent year-on-year. Even HP-UX reported better figures, up 8 per cent on 2004.

Software continues to be HP's weakness, although losses in the group narrowed slightly to $40 million on revenue of $249 million. And HP's financing operation recorded profits of $58 million on earnings of $489 million

For the fiscal year to date HP reported net income of $3.21 billion on sales of $63.78 billion, and expects Q4 FY2005 revenue come within the range of $22.4 billion to $22.8 billion.

Restructuring and redundancies will cost $900 million in the coming quarter, offset by a one-time saving of $200 million from freezing the pensions - a very unpopular move with HP's staff. ®

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.