HP Reports Q2 Results

PALO ALTO, Calif. -- HP (NYSE:HPQ - News) today announced financial results for its second fiscal quarter ended April 30, 2007, with net revenue of $25.5 billion, representing growth of 13% year-over-year, or 10% when adjusted for the effects of currency.

GAAP operating profit was $2.1 billion and GAAP diluted earnings per share (EPS) was $0.65 per share, down from $0.66 in the prior year period and up 27% excluding a $0.15 tax settlement gain recorded in the prior year period. Non-GAAP operating profit was $2.3 billion, with non-GAAP diluted EPS of $0.70, up from $0.69 in the prior year period and up 30% excluding the $0.15 tax settlement gain. Non-GAAP financial information excludes $145 million of adjustments on an after-tax basis, or $0.05 per diluted share, related primarily to restructuring charges and amortization of purchased intangibles, and offset partially by a pension curtailment gain resulting from changes to the company's U.S. defined benefit pension plan. GAAP and non-GAAP financial information include all stock-based compensation expense in both current and prior year periods.

"This was a strong performance for HP," said Mark Hurd, HP chairman and chief executive officer. "We generated $3 billion of revenue growth, continued to expand earnings and achieved record cash flow from operations. While we still have considerable work ahead of us, I am confident we can continue to execute with discipline and deliver strong financial returns."

Hewlett-Packard Co.