HP (HPQ) 8-K/A Results of Operations and Financial Condition

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
(In millions except per share amounts)

	Three months ended
	January 31, 2006			October 31, 2005			January 31, 2005
Net revenue	$	22,659		$	22,913		$	21,454
Costs and expenses(a):
Cost of sales		17,392			17,532			16,537
Research and development		871			859			878
Selling, general and administrative		2,692			2,786			2,704
Pension curtailment gain		--			(199	)		--
Restructuring charges		15			1,565			3
Amortization of purchased intangible assets		147			136			167
In-process research and development charges		50			2			--
Total costs and expenses		21,167			22,681			20,289
Earnings from operations		1,492			232			1,165
Interest and other, net		38			132			25
(Losses) gains on investments		(2	)		14			(24	)
Dispute settlement		--			3			(116	)
Earnings before taxes		1,528			381			1,050
Provision for (benefit from) taxes(b)		301			(35	)		107
Net earnings	$	1,227		$	416		$	943
Net earnings per share:
Basic	$	0.43		$	0.15		$	0.32
Diluted	$	0.42		$	0.14		$	0.32
Cash dividends declared per share	$	0.16		$	--		$	0.16
Weighted-average shares used to compute net earnings per share:
Basic		2,822			2,850			2,908
Diluted		2,893			2,908			2,936
(a) Stock-based compensation expense included under SFAS 123(R) were as follows:
Cost of sales	$	39		$	--		$	--
Research and development		18			--			--
Selling, general and administrative		87			--			--
Total costs and expenses	$	144		$	--		$	--
(b) Tax benefit from stock-based compensation	$	(43	)	$	--		$	--