Preliminary Second Quarter Results Announced By HP; Raises Full Year Earnings, Revenue Outlook

HP today announced preliminary results for the second fiscal quarter 2008, with revenue of $28.3 billion compared with $25.5 billion one year ago.

In the second quarter, preliminary GAAP diluted earnings per share (EPS) were $0.80 and non-GAAP diluted EPS were $0.87, compared with second quarter fiscal 2007 GAAP diluted EPS of $0.65 and non-GAAP diluted EPS of $0.70. Non-GAAP diluted EPS estimates exclude after-tax costs related primarily to the amortization of purchased intangible assets of approximately $0.07 per share and $0.05 per share in the second quarter of fiscal 2008 and fiscal 2007, respectively.

The second quarter results were highlighted by solid performance across HP’s business segments and strong cash flow from operations.


For the third fiscal quarter of 2008, HP estimates revenue of approximately $27.3 billion to $27.4 billion, GAAP diluted EPS in the range of $0.76 to $0.77, and non-GAAP diluted EPS in the range of $0.82 to $0.83. Non-GAAP diluted EPS guidance excludes after-tax costs of approximately $0.06 per share, related primarily to the amortization of purchased intangible assets.

HP estimates full-year FY08 revenue will be approximately $114.2 billion to $114.4 billion, up from its previous estimate of $113.5 billion to $114 billion. FY08 GAAP diluted EPS is expected to be in the range of $3.30 to $3.34, up from its previous estimate of $3.26 to $3.30, and FY08 non-GAAP diluted EPS is expected to be in the range of $3.54 to $3.58, up from its previous estimate of $3.50 to $3.54. FY08 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $0.24 per share, related primarily to the amortization of purchased intangibles. These estimates for both the third quarter and full year of fiscal 2008 do not reflect the potential impact of the acquisition of EDS that HP announced today.

HP is issuing this preliminary earnings announcement to facilitate communications with investors regarding today’s announcement that HP has entered into a definitive merger agreement to acquire EDS (see “HP to Acquire EDS for $13.9 billion” for details).

Updated earnings announcement date

In conjunction with today’s announcement of the acquisition of EDS, HP is now scheduled to release its final results for the second fiscal quarter on Tuesday, May 20, 2008, with a conference call scheduled for 5 p.m. ET/2 p.m. PT that day to provide additional details. An audio webcast of the conference call will be available at http://www.hp.com/investor/q22008webcast. A replay of the audio webcast will be available at the same website shortly after the call.