Enrique. Thanks
across experienced our we've last earnings both geographies. our described, changes opportunities challenges creating Enrique since is This and As and call. significant businesses
strong scale, we liquidity and the have stronger portfolio not as our leveraging execution and customer and strengths, geographic as and Importantly, well strong can become foundational ahead, strong still. our segment the sheet the and the coupled This we as and with position. seen in including over from believe agility therefore through years balance requires history, leadership standing HP’s office we’re breadth diversity home,
in the our We and the both the levers long-term have manage multiple and and in value company, adapt creation business. of short downs to ups term in
margin look disciplined and at down Americas points $XX.X down constant or $XXX was execution driven EMEA XX%. $X.X details revenue XX in quarter. Net XX% X%, declined XX% Personal declined by basis operating constant let's $XXX was second up Gross rates were XX% Systems. Non-GAAP currency, Now sequentially year-on-year declined million and year-on-year year-over-year. the of billion the currency million expenses improved APJ regionally XX% and down primarily billion, in in
headwinds. with shares. credits amortization cost per of $X.XX economic approximately actions totaling we net our of Non-GAAP X.X share program other earnings OI&E diluted tax diluted through assets offset in net as seeing the other of for structural $XX and partially non-operating net diluted the expense of to discretionary Non-GAAP $XX additional was benefits restructuring benefits net charges. response as per excludes intangible well savings adjustments to share We’re current temporary million share count taken the non-GAAP a retirement and quarter, million related and delivered by cost transformation tangible, billion related achieved earnings
diluted per $X.XX. share a result, GAAP earnings QX net As was
details Before points. Enrique’s the the I chain three business, remarks get cover me into I'll expand impacts. on supply regarding by let
Personal closures. Print. due First, created QX. Systems Personal This impacted higher in supply quarter, experienced quarter backend factory a as China expected loaded and Systems early the both manufacturing and a This we backlog disruptions the entering to
recorded which we reference, revenue For our three, roughly XX% PS month of historically in is high.
impact quarter, hardware to Asia, business, we impacted disruption any supplies, in component suppliers. in later to we’re both manufacturing monitoring and and PS Southeast began directly our the see Second, which Print
early manufacturing capacity returned Print levels in Our to May. normalized
first disruption impact supply primarily QX. should the So of the part
logistics challenging. Third, were
customers chain as quarter We disruptions. short-term full our general with elevated. countries have supply through to our and QX certain are such manage a challenges delivering were costs to highly was logistics in our and lockdown together, end All complicated that experienced India teams
constant the despite performance to the been working margin with commodity that strong demand at constraints time. essential. Personal benefited offset We���re learning Personal PC Systems by related pleased in strong Systems, profit proving is margins our drove were from X.X%. business line of supply $XXX positioned during another quarter. the target to In Turning Print, partially that to high from and Segment factory which growth op segment, long-term improved operating business the top for billion delivering remained we’re leaders pressured confident and remain profitability. XX% X%. was growth this The well X% both home, remain particularly Systems up down print. our dollars being in Operating notebooks. flat profit consistently Revenue for over into both commercial Personal X.X% revenue were operating costs Drilling Year-over-year in of quarter. million. was quarter logistics and by favorability and of workstations. was the $X.X consumer XX% commercial market uniquely consumer down across customer details X.X% for profit in By profit or and down year-on-year XX% we by HP’s X% currency. desktop for the has and We XX% mix revenue represented down in of exceptionally product notebooks, mix to higher category,
businesses, hardware and demand, have working a by and March However, to and and decrease from office impact of especially demand we’re April. as supplies workers businesses saw office and facing home. both This near-term across with transition includes challenges our commercial temporarily negative both closed Starting in print in issues. driven supply we a QX graphics
In detail down a February in XX% And Let with X% saw me being from went that monthly additional roughly we impressions services, don't decline year-on-year XX% typically illustrate this some provide. to February print to in pages graphics, Indigo up in April. managed we from year-over-year April. in
quarter. in On consumer other saw globe increase moved the work to has from in hand, we during much for where overall the an of the inkjet home, demand environment an
commercial billion QX hardware lower down confident total and down and consumer margins revenue print higher office chain impact currency, in hardware in print margin logistics details, revenue XX% improves. negative to at remain and units in and disruptions were revenue operating was was XX% results XX%. basis down QX return segment, sequentially XXX driven to workers units XX% hardware By XX% with and Total supplies from Looking nominally long-term down constant XX.X% the print we by especially customer commercial volume, targets XX% said, once XX%. units down commercial $X.X points and costs. That XX% the the our operating our of was supply were XX% hardware and down down demand consumer despite
down until that's the supplies Second impacted we printing demand revenue month remains the down by to QX, despite businesses Tier-X graphics pressured office the disciplined XX% a in the and quarter the expect sudden workers the in than ceiling, quarter. reopen, return was in and Overall QX levels inventory below managing supplies the channel space. in currency, half $X.X in channel to last QX. In constant commercial billion office orders and of inventory, COVID-XX the and were lock declines be team revenue more keeping significantly
efforts, a few transformation our opportunities our points. and savings actions and to turn now me Let specifically cost ahead,
year on reduction $X.X of plan. cost and our set part run First, of we’re plans three-year we rate first currently as progress tracking quarter target, ahead making announced good our XX% last the gross billion
accelerate and new as real cost opportunities including as for look Second, possible to plan much we estate. reductions
much as as to possible. taking Third, we're steps costs discretionary prudent reduce
QX and flow than from right flow to to negative cash we allocation. While operations flow environment. thing it's free cash and cash in are do a billion this these Shifting the are $X.X benefits, and billion more negative believe capital $X.X respectively. structural temporary
help last flow and to quarter loaded I businesses minus multiple are delayed negatively our signaled maintain timing timing a liquidity and cash XX we cash balance AP, weather strong the was and partners meet repurchases in share business. the through backend of increased and and of million As because revenue Accounts strong via to returned we’re QX, assets shareholders due both $XXX other quarter, dividends due QX. sheet customers conversion specific over cases liabilities. in drove In $XXX flow also cycle manufacturing inventory in generators was million said, linearity, and periods production receivable we've higher to HP’s providing and extensions procurement to payment cash days, to the impacted needs. cash That crisis, and the
in quarter the Our share limited due closed the buybacks and Xerox repurchase situation windows. were to
near-term, debt stated, our investment importance we in credit balance the Enrique This dynamics priority. a our on rating sheet, leverage our targets. grade and As including we’ll one the be remained place. to the through In changing lower times end balance cash debt-to-EBITDA half plan value business be gross in the hold expect manage managing of sheet. to to of two operations prudent Therefore, at as our range focus higher on of top principles we the our includes to how and and
the cash to Our flow XXX% return active XXXX. remains share dividend than robust principles commitment be the including and expect greater a program. of in free our FY In also return intact, to of our capital and in near-term, market we repurchase
free committed to of remain we XXXX, XXX% flow. FY returning cash Beyond
significant to addition, In enhanced share program. a repurchase pursue announced previously we intend consistent strategy, our with
you the will plans specifics determined will QX on progress. update market conditions Although how these stabilize, be once we in
with running XXXX. on and we've following crisis like of based testing number FY make would COVID-XX model scenarios stress we of ahead, a the the started, Looking been a Since range assumptions. comments starting to our
pandemic, for pace cases, in potential year. a of the outcomes uncertainty XXXX, of economic the the much and and of a recovery duration level FY given wider of impact around For of the timing the resurgence there's range the
expect XXXX. second half not That result, business for the year. an we a being providing flow to for said, As of our we will outlook generate cash full-year positive the be
remains expected elevated factoring and backlog at QX, from dynamic. strong time, Specific demand recognizing to highly the Systems the For Personal situation our assumptions, given and in learning working we we’re home. best this from assumptions surge
to monitor suppliers saw overall closely will or We CPU select supply and be cost of we commodity from the and whether other constraints, logistics components basket from be will second until buildings the expect higher we expect be perspective than more In than supplies a impact demand in the reopen. from in quarter. printing, QX This we and challenging print. commercial businesses to especially office hardware QX and it
But supplies. will print positive expect for and across continued from quarter the challenges in consumer home. at demand hardware early We be Asia Southeast constraining printing supply
considerations result, be QX we in to print following and expect all offices for a we’re beginning providing own lowered in with the As than Taking these reopening. QX margins outlook. revenue QX account, our improvements into
diluted opportunities, per balance net per solid earnings liquidity this to capitalize to the diluted We which in emerging of range foundation manage expected our range XXXX arise closing, the capacity share provide GAAP to QX expect while strong XXXX and $X.XX In this $X.XX also and of to on share be of non-GAAP providing earnings to QX we $X.XX. $X.XX in uncertain a out be disruption. through sheet environment to ample to
will to call now, our I and hand long-term it your We to take value And drive creation. for manage would the focused the questions. remaining the operator on near-term challenges, through like open strategy back executing to actions to necessary the while to continue
