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

Exhibit 99.2

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS

(Unaudited)

(In millions except per share amounts)

	Three months ended
	April 30, 2006			January 31, 2006			April 30, 2005
Net revenue	$	22,554		$	22,659		$	21,570
Costs and expenses(a):
Cost of sales	16,970			17,392			16,429
Research and development	930			871			890
Selling, general and administrative	2,858			2,692			2,933
Restructuring	(14		)	15			4
Amortization of purchased intangible assets	151			147			151
In-process research and development charges	2			50			—
Total costs and expenses	20,897			21,167			20,407
Earnings from operations	1,657			1,492			1,163
Interest and other, net	157			38			(87		)
Gains (losses) on investments	6			(2		)	3
Earnings before taxes	1,820			1,528			1,079
(Benefit from) provision for taxes(b)	(79		)	301			113
Net earnings	$	1,899		$	1,227		$	966
Net earnings per share:
Basic	$	0.68		$	0.43		$	0.33
Diluted	$	0.66		$	0.42		$	0.33
Cash dividends declared per share	$	—		$	0.16		$	—
Weighted-average shares used to compute net earnings per share:
Basic	2,809			2,822			2,886
Diluted	2,887			2,893			2,917

^(a) Stock-based compensation expense included under SFAS 123(R) were as follows:

Cost of sales	$	33	$	39	$	—
Research and development	15		18		—
Selling, general and administrative	76		87		—
Total costs and expenses	$	124	$	144	$	—

^(b) Tax benefit from stock-based compensation $ (39 ) $ (43 ) $ —

	Six months ended April 30,
	2006		2005
Net revenue	$	45,213	$	43,024
Costs and expenses(a):
Cost of sales	34,362		32,966
Research and development	1,801		1,768
Selling, general and administrative	5,550		5,637
Restructuring	1		7
Amortization of purchased intangible assets	298		318
In-process research and development charges	52		—
Total costs and expenses	42,064		40,696
Earnings from operations	3,149		2,328
Interest and other, net	195		(62		)
Gains (losses) on investments	4		(21		)
Dispute settlement	—		(116		)
Earnings before taxes	3,348		2,129
Provision for taxes(b)	222		220
Net earnings	$	3,126	$	1,909
Net earnings per share:
Basic	$	1.11	$	0.66
Diluted	$	1.08	$	0.65
Cash dividends declared per share	$	0.16	$	0.16
Weighted-average shares used to compute net earnings per share:
Basic	2,815		2,897
Diluted	2,890		2,926

^(a) Stock-based compensation expense included under SFAS 123(R) were as follows:

Cost of sales	$	72	$	—
Research and development	33		—
Selling, general and administrative	163		—
Total costs and expenses	$	268	$	—

^(b) Tax benefit from stock-based compensation $ (82 ) $ —

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(In millions)

	April 30, 2006		October 31, 2005
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	14,032	$	13,911
Short-term investments	12		18
Accounts receivable, net	9,783		9,903
Financing receivables, net	2,540		2,551
Inventory	6,768		6,877
Other current assets	9,073		10,074
Total current assets	42,208		43,334
Property, plant and equipment, net	6,351		6,451
Long-term financing receivables and other assets	8,194		7,502
Goodwill and purchased intangibles, net	20,430		20,030
Total assets	$	77,183	$	77,317
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Notes payable and short-term borrowings	$	2,609	$	1,831
Accounts payable	10,077		10,223
Employee compensation and benefits	2,538		2,343
Taxes on earnings	1,906		2,367
Deferred revenue	4,101		3,815
Accrued restructuring	872		1,119
Other accrued liabilities	10,354		9,762
Total current liabilities	32,457		31,460
Long-term debt	2,406		3,392
Other liabilities	5,266		5,289
Stockholders’ equity	37,054		37,176
Total liabilities and stockholders’ equity	$	77,183	$	77,317