HP Reports Revenue Declines in Fourth Quarter and Fiscal Year Results
HP estimates full fiscal year 2010 revenue will be approximately $118.0 billion to $119.0 billion, up from its previous estimate of $117.0 billion to $118.0 billion. Full fiscal year 2010 GAAP diluted EPS is expected to be in the range of $3.65 to $3.75, up from its previous estimate of $3.60 to $3.70, and non-GAAP diluted EPS is expected to be in the range of $4.25 to $4.35, up from its previous estimate of $4.20 to $4.30. Full fiscal year 2010 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $0.60 per share, related primarily to the amortization of purchased intangibles, restructuring charges and acquisition-related charges. These estimates for both the first fiscal quarter and full fiscal year of 2010 do not reflect the potential impact of the acquisition of 3Com Corporation that HP announced on Nov. 11, 2009.
Adoption of new accounting pronouncements
In the fourth quarter, HP early adopted two recently released accounting standards related to revenue recognition, Accounting Standards Update (“ASU”) No. 2009-13 and ASU No. 2009-14 for transactions originating or materially modified in fiscal 2009. These accounting changes generally result in earlier revenue recognition than under previous guidance for certain deliverables in multiple-element arrangements. HP adopted these standards as of the beginning of fiscal 2009; therefore the previously reported quarterly results have been restated to reflect the impact of adoption.
More information on HP’s quarterly earnings, including additional financial analysis and an earnings overview presentation, is available on HP’s Investor Relations website at www.hp.com/investor/home.
HP’s Q4 FY09 earnings conference call is accessible via an audio webcast at www.hp.com/investor/q42009webcast.
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