HP Reports Q3 2002 Results
PALO ALTO, Calif., Aug 27, 2002 (BUSINESS WIRE) -- Hewlett-Packard Company (NYSE:HPQ)
-- Revenue of $16.5 Billion -- Pro Forma Gross Margin Increases to 25.7% -- Pro Forma EPS of $0.14 -- Met All Quarterly Integration Milestones, Second-half Goals on Track -- Affirms Current Q4 Consensus Estimates -- GAAP EPS of ($0.67); Includes $1.6B Restructuring and $1.4B Other Merger-related Charges
HP (NYSE:HPQ) today reported financial results for its third fiscal quarter ended July 31, 2002. This is the company's first earnings report that includes the merger transaction with Compaq Computer Corp., which was completed May 3, 2002. (Results and comparisons in this release are stated on a combined company basis and reflect Compaq's prior fiscal quarter results as if combined with HP at the start of HP's prior fiscal quarters.(1))
The company reported third quarter revenue of $16.5 billion, compared to $18.2 billion on a combined company basis in the prior quarter. Sequentially, combined company revenue declined 9%, while pro forma gross margin increased from 25.5% to 25.7%. Pro forma operating expenses were up sequentially from 21.0% to 22.5% of net revenue, reflecting normal seasonality and merger-related sales training and product rollouts. Operating expenses were down 10% year over year, equivalent to $400 million on an absolute dollar basis.
"Throughout our first 100 days, we've kept our eye on the ball," said Carly Fiorina, HP chairman and chief executive officer. "We're hitting all our integration milestones and are on track to meet our second-half targets. The top 50 contracts we won in the quarter totaled $2 billion in new long-term revenue, and we exit the quarter with almost $12 billion in cash and equivalents. While we have more work ahead, given the tough economy and a major integration, we've accomplished a great deal."
Full report here: hp.com |
