HP reported financial results for its fiscal fourth quarter and fiscal year ended Oct. 31, 2013.
Fourth quarter net earnings per share (EPS) was 73 cents, up from a net loss per share of $3.49 in the prior-year period. Fourth quarter net revenue of $29.1 billion was down 3% from the prior-year period.
Fiscal 2013 EPS was $2.62, up from a net loss per share of $6.41 in the prior-year period. Fiscal 2013 net revenue of $112.3 billion was down 7% from the prior year and down 5% when adjusted for the effects of currency.
Meg Whitman (President and chief executive officer, HP): Our Q4 results demonstrate that HP’s turnaround remains on track heading into fiscal 2014.
HP generated $2.8 billion in cash flow from operations in the fourth quarter, down 31% from the prior-year period. Inventory ended the quarter at $6.0 billion, down 1 day year over year to 24 days.
Fourth quarter fiscal 2013 segment results
Personal Systems revenue was down 2% year over year with a 3 % operating margin. Commercial revenue increased 4% and Consumer revenue declined 10%. Total units were up 2% with Desktops units down 5% and Notebooks units up 3%.
Printing revenue was down 1% year over year with a 17.7% operating margin. Total hardware units were up 6% with Commercial hardware units up 9% and Consumer hardware units up 4%. Supplies revenue was down 4%.
Enterprise Group revenue was up 2% year over year with a 14.5% operating margin. Networking revenue was up 3%, Industry Standard Servers revenue was up 10%, Business Critical Systems revenue was down 17%, Storage revenue was up 1% and Technology Services revenue was down 6%.
Enterprise Services revenue declined 9% year over year with a 4.4% operating margin. Application and Business Services revenue was down 10%, and Infrastructure Technology Outsourcing revenue declined 9%.
Software revenue was down 9% year over year with a 30.8% operating margin. Support revenue was up 4%, license revenue was down 24%, professional services revenue was down 13% and software-as-a-service (SaaS) revenue was up 15%.
HP Financial Services revenue was down 6% year over year with a 5% decrease in net portfolio assets and a 3% decrease in financing volume. The business delivered an operating margin of 11.2%.
Outlook: For the first quarter of fiscal 2014, HP estimates net EPS to be in the range of 60 cents to 64 cents. For fiscal 2014, HP estimates EPS to be in the range of $2.85 to $3.05.
[Image courtesy: HP]
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