HP Finds Continuous Turnaround in 4Q2014

HP has released its financial results for fiscal 2014 and fourth quarter ending October 31, 2014. Net revenue for Fiscal 2014 (FY14) registered US$111.5 billion, dropped 1% year on year (YOY) and was flat on a constant currency basis. Net revenue for the fourth quarter of 2014 (4Q2014) was $28.4 billion, down 2% YOY and down 3% on a constant currency basis.

Printing segment increased 5% YOY with US$5.7 billion net revenue and non-GAAP operating profit of this segment was US$1,040 million for 4Q2014. The report showed that the segment contributed 19% of the total net revenue and 33% of the total US$2.7 billion non-GAAP operating profit in this quarter. Supplies revenue decreased 7% YOY and total hardware units dropped 1% YOY in 4Q2014, including commercial hardware units up 5% YOY and consumer hardware units down 4% YOY. The segment also grew 4% YOY with US$22,979 million net revenue and non-GAAP operating profit was US$4,185 for FY14.

HP said, “The Printing segment and the Personal Systems segment are structured beneath a broader Printing and Personal Systems Group (PPS). While PPS is not a reportable segment, HP provides financial data aggregating the segments within it in order to provide a supplementary view of its business.”

Meg Whitman, Chairman, President and Chief Executive Officer at HP, felt excited and believes “HP’s turnaround continues on track”, “In FY14, we stabilized our revenue trajectory, strengthened our operations, showed strong financial discipline, and once again made innovation the cornerstone of our company. Our product roadmaps are the best they’ve been in years and our partners and customers believe in us. There’s still a lot left to do, but our efforts to date, combined with the separation we announced in October, sets the stage for accelerated progress in FY15 and beyond.”