| Three months ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| October 31, 2003 | July 31, 2003 | October 31, 2002(a) | |||||||||
| Net revenue | $ | 19,853 | $ | 17,348 | $ | 18,048 | |||||
| Costs and expenses: | |||||||||||
| Cost of sales | 14,804 | 12,809 | 13,380 | ||||||||
| Research and development | 907 | 896 | 979 | ||||||||
| Selling, general and administrative | 2,707 | 2,785 | 2,818 | ||||||||
| Restructuring charges | 190 | 376 | 150 | ||||||||
| Amortization of goodwill and purchased | |||||||||||
| intangible assets | 143 | 141 | 151 | ||||||||
| Acquisition-related charges | 28 | 40 | 145 | ||||||||
| In-process research and development | 1 | -- | -- | ||||||||
| Total costs and expenses | 18,780 | 17,047 | 17,623 | ||||||||
| Earnings from operations | 1,073 | 301 | 425 | ||||||||
| Interest and other, net | (20 | ) | 10 | 68 | |||||||
| Net investment gains (losses) and other, net | 12 | (24 | ) | (38 | ) | ||||||
| Earnings before taxes | 1,065 | 287 | 455 | ||||||||
| Provision for (benefit from) taxes | 203 | (10 | ) | 65 | |||||||
| Net earnings | $ | 862 | $ | 297 | $ | 390 | |||||
| Net earnings per share: | |||||||||||
| Basic | $ | 0.28 | $ | 0.10 | $ | 0.13 | |||||
| Diluted | $ | 0.28 | $ | 0.10 | $ | 0.13 | |||||
| Cash dividends declared per share | $ | - | $ | 0.16 | $ | - | |||||
| Weighted-average shares used to compute net earnings per share: | |||||||||||
| Basic | 3,046 | 3,048 | 3,047 | ||||||||
| Diluted | 3,075 | 3,071 | 3,048 | ||||||||
| (a) | Certain reclassifications have been made to prior period amounts in order to conform to the current year presentation. |
| October 31, 2003 | October 31, 2002(a) | |||||||
|---|---|---|---|---|---|---|---|---|
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 14,188 | $ | 11,192 | ||||
| Short-term investments | 403 | 237 | ||||||
| Accounts receivable, net | 8,921 | 8,456 | ||||||
| Financing receivables, net | 2,965 | 3,453 | ||||||
| Inventory | 6,065 | 5,797 | ||||||
| Other current assets | 8,454 | 6,940 | ||||||
| Total current assets | 40,996 | 36,075 | ||||||
| Property, plant and equipment, net | 6,482 | 6,924 | ||||||
| Long-term financing receivables and other | ||||||||
| assets | 7,980 | 7,758 | ||||||
| Goodwill | 14,894 | 15,089 | ||||||
| Purchased intangible assets | 4,356 | 4,864 | ||||||
| Total assets | $ | 74,708 | $ | 70,710 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Notes payable and short-term borrowings | $ | 1,080 | $ | 1,793 | ||||
| Accounts payable | 9,285 | 7,012 | ||||||
| Employee compensation and benefits | 1,755 | 2,012 | ||||||
| Taxes on earnings | 1,599 | 1,529 | ||||||
| Deferred revenues | 3,657 | 3,260 | ||||||
| Accrued restructuring | 709 | 1,309 | ||||||
| Other accrued liabilities | 8,545 | 7,395 | ||||||
| Total current liabilities | 26,630 | 24,310 | ||||||
| Long-term debt | 6,494 | 6,035 | ||||||
| Other liabilities | 3,838 | 4,103 | ||||||
| Stockholders' equity | 37,746 | 36,262 | ||||||
| Total liabilities and stockholders' equity | $ | 74,708 | $ | 70,710 | ||||
| (a) | Certain reclassifications have been made to prior year balances in order to conform to the current year presentation. |
Net revenue (which includes intersegment revenue) and earnings from operations for each segment are provided in the tables below, which includes a reconciliation to our consolidated condensed statement of earnings:
| Three months ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| October 31, 2003 | July 31, 2003 | October 31, 2002(a) | |||||||||
| Net revenue: | |||||||||||
| Imaging and Printing Group | $ | 6,247 | $ | 5,240 | $ | 5,624 | |||||
| Personal Systems Group | 5,996 | 4,965 | 5,037 | ||||||||
| Enterprise Systems Group | 4,073 | 3,708 | 3,995 | ||||||||
| HP Services | 3,231 | 3,083 | 3,065 | ||||||||
| Financing | 461 | 442 | 537 | ||||||||
| Corporate Investments | 96 | 88 | 81 | ||||||||
| Total segments | 20,104 | 17,526 | 18,339 | ||||||||
| Eliminations of intersegment | |||||||||||
| net revenue and other | (251 | ) | (178 | ) | (291 | ) | |||||
| Total HP Consolidated | $ | 19,853 | $ | 17,348 | $ | 18,048 | |||||
| Earnings (loss) from operations: | |||||||||||
| Imaging and Printing Group | $ | 1,006 | $ | 739 | $ | 944 | |||||
| Personal Systems Group | 21 | (56 | ) | (68 | ) | ||||||
| Enterprise Systems Group | 106 | (70 | ) | (129 | ) | ||||||
| HP Services | 393 | 337 | 362 | ||||||||
| Financing | 26 | 18 | (101 | ) | |||||||
| Corporate Investments | (33 | ) | (37 | ) | (52 | ) | |||||
| Total segments | 1,519 | 931 | 956 | ||||||||
| Acquisition-related inventory write-downs | -- | -- | (10 | ) | |||||||
| Corporate and unallocated costs, | |||||||||||
| and eliminations | (84 | ) | (73 | ) | (75 | ) | |||||
| Restructuring charges | (190 | ) | (376 | ) | (150 | ) | |||||
| Amortization of goodwill and purchased | |||||||||||
| intangible assets | (143 | ) | (141 | ) | (151 | ) | |||||
| Acquisition-related charges | (28 | ) | (40 | ) | (145 | ) | |||||
| In-process research and development | |||||||||||
| charges | (1 | ) | -- | -- | |||||||
| Interest and other, net | (20 | ) | 10 | 68 | |||||||
| Net Investment gains (losses) and other, net | 12 | (24 | ) | (38 | ) | ||||||
| Total HP Consolidated Earnings Before Taxes | $ | 1,065 | $ | 287 | $ | 455 | |||||
(a) Certain reclassifications have been made to prior year amounts in order to conform to the current year presentation.
_________________
