GAAP operating profit was US$1.5bn and GAAP diluted earnings per share (EPS) was $0.48 per share, up from $0.03 in the prior year period. GAAP financial information for the third quarter 2005 reflects a tax adjustment resulting from HP’s decision to repatriate $14.5bn in cash from foreign earnings.
Non-GAAP operating profit was US$1.7bn, with non-GAAP diluted EPS of $0.52, up from $0.36 in the prior year period. Non-GAAP financial information excludes $108m of adjustments on an after-tax basis, or $0.04 per diluted share, related primarily to amortisation of purchased intangibles. GAAP and non-GAAP financial information include stock-based compensation expense in the current financial period only.
“HP delivered another solid quarter with strong revenue growth, improved margins and healthy cash flow,” says Mark Hurd, HP chief executive officer and president. “We gained share without sacrificing margins and continue to execute well against our long-term plan. This is visible in our third quarter results and improved fourth quarter outlook.”
During the quarter, on a year-over-year basis, revenue in the Asia Pacific grew 7 per cent to US$3.8bn or, when adjusted for the effects of currency, 8 per cent.
HP’s Imaging and Printing Group (IPG) revenue grew 5 per cent year-over-year to US$6.2bnn. On a year-over-year basis, supplies revenue grew 9 per cent, commercial hardware revenue grew 3 per cent and consumer hardware revenue declined 3 per cent.
Printer unit shipments increased 15 per cent year-over-year, with consumer printer hardware units up 13 per cent and commercial printer hardware units up 23 per cent. Momentum in key growth initiatives continued, with All-in-One unit shipments up 17 per cent year-over-year, color laser printer shipments up 70 per cent and printer-based MFP shipments up 196 per cent.
HP Indigo Press printed page volume grew 37 per cent over the prior year period. Operating profit was US$884m, or 14.2 per cent of revenue, up from a profit of $771m, or 13 per cent of revenue, in the prior year period.
HP estimates Q4 evenue will be approximately US$24.1bn.
For the four fiscal quarters ended July 31, 2006, HP revenue totaled US$90bn.
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