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To: Yogizuna who wrote (5586)	5/16/2000 9:00:00 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 17683

Another misleading earning report of Financial Engineering of Profits carbon copied by CNBC HWP reports exactly the same operating profits on higher sales. Implication - SHRINKING MARGINS But the headline of earnings is misleading - growth in earnings. Judge for yourself HEWLETT-PACKARD COMPANY AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENT OF EARNINGS (Unaudited) (In millions except per share amounts) Three months ended Percent April 30 increase/ 2000 1999 (decrease) ------ ------ -------- Net revenue: Products $10,231 $ 8,999 Services 1,797 1,456 ------- ------- Total 12,028 10,455 15 Costs and expenses: Cost of products sold and services 8,595 7,299 Research and development 671 633 Selling, general and administrative 1,872 1,628 ------- ------- Total 11,138 9,560 17 Earnings from operations 890 895 (1) Interest income and other, net 210 194 Interest expense 40 45 ------- ------- Earnings from continuing operations before taxes 1,060 1,044 2 Provision for taxes 244 278 ------- ------- Net earnings from continuing operations 816 766 7 ------ ------ Net earnings from discontinued operations 119 152 (22) ---- ------- Net earnings $ 935 $ 918 2 ======= ======= Net earnings per share: Continuing operations(A) Basic $ 0.82 $ 0.76 Diluted 0.79 0.73 Net earnings per share: Discontinued operations(A) Basic $ 0.12 $ 0.15 Diluted 0.11 0.15 Net earnings per share: Total(A) Basic $ 0.94 $ 0.91 Diluted 0.90 0.88 Cash dividends per share $ 0.16 $ 0.16 ======= ======= Average number of shares and equivalents Basic 994 1,010 Diluted 1,042 1,051