HP Reports Q2 Results With Net Revenue Of $30.7 Billion, Confirms 27,000 Job Cuts

Posted on May 24 2012 - 4:07am by Editorial Staff

HP has announced financial results for its second fiscal quarter ended April 30, 2012. For the quarter, net revenue of $30.7 billion was down 3% year over year both as reported and when adjusted for the effects of currency. GAAP diluted earnings per share (EPS) was $0.80, down 24% from the prior-year period. Non-GAAP diluted EPS was $0.98, down 21% from the prior-year period. Second quarter non-GAAP earnings information excludes after-tax costs of $356 million, or $0.18 per diluted share, related to amortization of purchased intangible assets, restructuring charges and acquisition-related charges.

HP President and CEO Meg Whitman said in a statement: “We are making progress in our multi-year effort to make HP simpler, more efficient and better for customers, employees, and shareholders,” said Meg Whitman, HP president and chief executive officer. “This quarter we exceeded our previously provided outlook and are executing against our strategy, but we still have a lot of work to do.”

On a conference call with analysts, Whitman added: Overall, I feel cautiously optimistic coming out of Q2. Our results appear to be stabilizing. While I wouldn’t say we’ve turned the corner, we are making progress. PSG held margins steady and an uptick in the commercial business helped offset continued weakness on the consumer side.

The company even confirmed the earlier rumor and says it will cut 27,000 jobs – around 8 percent of its global workforce – in order to restructure the company. The layoff will help the company in saving around $3-3.5 billion and will invest it in R&D. HP chief executive Meg Whitman said the cuts will spread over the next two years by the end of fiscal year 2014, reducing the short-term harm to morale in the company.

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