HP Reports Revenue Declines in Fourth Quarter and Fiscal Year Results
HP Financial Services
HP Financial Services (HPFS) reported revenue of $726 million, up 5% from the prior-year period. Financing volume increased 6%, and net portfolio assets increased 21%. Operating margin was 9.1% of revenue, up from 7.4% in the prior-year period.
Asset management
HP generated $3.4 billion in cash flow from operations for the fourth quarter. Inventory ended the quarter at $6.1 billion, down 4 days. Accounts receivable of $16.5 billion was up 3 days. Accounts payable ended the quarter at $14.8 billion, up 5 days. HP’s dividend payment of $0.08 per share in the fourth quarter resulted in cash usage of $190 million. HP utilized $2.1 billion of cash during the fourth quarter to repurchase approximately 46 million shares of common stock in the open market. HP exited the quarter with $13.4 billion in gross cash.