11.30.15
HP Inc. announced Hewlett-Packard Co. financial results for fiscal 2015 and the fourth quarter ended Oct. 31, 2015. These results include Hewlett Packard Enterprise Co., Hewlett-Packard Co.’s former enterprise technology infrastructure, software, services and financing businesses, which separated from Hewlett-Packard Co. on Nov. 1, 2015. In connection with this separation, Hewlett-Packard Co. changed its name to HP Inc. effective as of Oct. 31, 2015.
Fiscal 2015 net revenue was $103.4 billion, down 7% from the prior-year period and down 2% on a constant currency basis. Fiscal 2015 non-GAAP diluted net earnings per share was $3.59, within the previously provided outlook of $3.59 to $3.65 per share. Fiscal 2015 GAAP diluted net earnings per share of $2.48 was above the previously provided outlook of $1.87 to $1.93 per share. Fiscal 2015 cash flow from operations was $6.5 billion, down 47% from the prior-year period
Fourth quarter net revenue of $25.7 billion was down 9% from the prior-year period and down 3% on a constant currency basis. Fourth quarter non-GAAP diluted net earnings per share was $0.93, within the previously provided outlook of $0.92 to $0.98 per share. Fourth quarter GAAP diluted net earnings per share was $0.73, above the previously provided outlook of $0.12 to $0.18 per share, while fourth quarter cash flow from operations was $2.6 billion, down 3% from the prior-year period.
Personal Systems revenue was down 14% year over year with a 3.8% operating margin. Commercial revenue decreased 15% and Consumer revenue decreased 12%. Total units were down 12%, with Desktops units down 17% and Notebooks units down 5%.
Printing revenue was down 14% year over year with a 17.4% operating margin. Total hardware units were down 17%, with Commercial hardware units down 23% and Consumer hardware units down 14 percent. Supplies revenue was down 10%.
Enterprise Group revenue was up 2% year over year with a 14.0% operating margin. Industry Standard Servers revenue was up 5%, Storage revenue was down 7%, Business Critical Systems revenue was down 8%, Networking revenue was up 35% and Technology Services revenue was down 11%.
Enterprise Services revenue was down 9% year over year with an 8.2% operating margin. Application and Business Services revenue was down 5% and Infrastructure Technology Outsourcing revenue declined 11%.
Software revenue was down 7% year over year with a 30.1% operating margin. License revenue was down 6%, support revenue was down 9%, professional services revenue was down 3% and software-as-a-service (SaaS) revenue was down 2%.
HP Financial Services revenue was down 11% year over year with a 2% increase in net portfolio assets and a 4% decrease in financing volume. The business delivered an operating margin of 10.8%.
“In these challenging markets, we are taking decisive actions that will protect our core business which generates the majority of our cash flows,” said Dion Weisler, president and CEO, HP Inc. “We firmly believe in our strategy and, given our scale, innovation, channel reach and brand, we are well positioned to gain profitable share in the markets where we choose to play.”
Fiscal 2015 net revenue was $103.4 billion, down 7% from the prior-year period and down 2% on a constant currency basis. Fiscal 2015 non-GAAP diluted net earnings per share was $3.59, within the previously provided outlook of $3.59 to $3.65 per share. Fiscal 2015 GAAP diluted net earnings per share of $2.48 was above the previously provided outlook of $1.87 to $1.93 per share. Fiscal 2015 cash flow from operations was $6.5 billion, down 47% from the prior-year period
Fourth quarter net revenue of $25.7 billion was down 9% from the prior-year period and down 3% on a constant currency basis. Fourth quarter non-GAAP diluted net earnings per share was $0.93, within the previously provided outlook of $0.92 to $0.98 per share. Fourth quarter GAAP diluted net earnings per share was $0.73, above the previously provided outlook of $0.12 to $0.18 per share, while fourth quarter cash flow from operations was $2.6 billion, down 3% from the prior-year period.
Personal Systems revenue was down 14% year over year with a 3.8% operating margin. Commercial revenue decreased 15% and Consumer revenue decreased 12%. Total units were down 12%, with Desktops units down 17% and Notebooks units down 5%.
Printing revenue was down 14% year over year with a 17.4% operating margin. Total hardware units were down 17%, with Commercial hardware units down 23% and Consumer hardware units down 14 percent. Supplies revenue was down 10%.
Enterprise Group revenue was up 2% year over year with a 14.0% operating margin. Industry Standard Servers revenue was up 5%, Storage revenue was down 7%, Business Critical Systems revenue was down 8%, Networking revenue was up 35% and Technology Services revenue was down 11%.
Enterprise Services revenue was down 9% year over year with an 8.2% operating margin. Application and Business Services revenue was down 5% and Infrastructure Technology Outsourcing revenue declined 11%.
Software revenue was down 7% year over year with a 30.1% operating margin. License revenue was down 6%, support revenue was down 9%, professional services revenue was down 3% and software-as-a-service (SaaS) revenue was down 2%.
HP Financial Services revenue was down 11% year over year with a 2% increase in net portfolio assets and a 4% decrease in financing volume. The business delivered an operating margin of 10.8%.
“In these challenging markets, we are taking decisive actions that will protect our core business which generates the majority of our cash flows,” said Dion Weisler, president and CEO, HP Inc. “We firmly believe in our strategy and, given our scale, innovation, channel reach and brand, we are well positioned to gain profitable share in the markets where we choose to play.”