HP Posts $2B Loss After Compaq Merger
Online staff -- EDN, August 27, 2002
Hewlett-Packard Co. today posted its financial results for its fiscal Q3, which ended July 31. These are the first results since the recent merger with Compaq Computer Corp. HP saw revenue of $16.5 billion, compared to $18.2 billion on a combined company basis in the prior quarter, a 9 percent decline.
The combined company reported a loss of $2 billion, or 67 cents per share. In the year-ago quarter, HP posted net income of $123 million, or 6 cents per share. But today’s fiscal Q3 results include a $3 billion restructuring charge for merger and non-merger related costs.
"Throughout our first 100 days, we've kept our eye on the ball," said Carly Fiorina, HP chairman and CEO, in a statement. "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."
For its fiscal Q4, HP affirmed Wall Street consensus estimates of $17.4 billion in revenues and 22 cents earnings per share on a pro forma basis. For fiscal Q3, the combined company posted pro forma earnings per share of 14 cents, compared to 19 cents in the previous quarter and 11 cents in the year-ago period. Pro forma results do not include potential charges or gains the company may record during the quarter.
