HP Issues Statement in Response to Market Confusion Around Its 10-Q Filing



PALO ALTO, Calif.--(BUSINESS WIRE)--March 13, 2003--HP (NYSE: HPQ) today issued the following statement in response to market confusion around its 10-Q filing.

"As part of our normal controls process in preparation for our official 10-Q filing, we discovered an accounting classification error," said Bob Wayman, HP chief financial officer. "We obviously regret this error and the confusion caused by a reported cash flow from operations in Q1 of $647 million in our official 10-Q filing versus the $791 million we reported in our preliminary cash flow statement. We are reviewing our procedures for preparing preliminary statements. The important takeaway for investors from both our earnings call and yesterday's 10-Q filing is that our gross cash position of $13.2 billion is strong and unchanged."

"Our PC business performance also continues to be the subject of continued confusion," said Wayman. "In our latest Q1, we reported a profit of $33 million in our Personal Systems business -- a sequential improvement of $101 million in operating performance from a loss of $68 million the preceding quarter. On a combined company basis, the PC business lost $52 million a year ago. The improvement year over year was $85 million. By every measure, this represents real profitability and real performance improvement."

Finally, in response to continued speculation around revenue loss, the company reported that for the 2002 fourth calendar quarter period, in line with the reporting periods of many of its peers, revenues would have been up 9% sequentially. Wayman added: "One month into the company's second fiscal quarter, revenue for the combined company is up 3% year over year."

About HP

HP is a leading global provider of products, technologies, solutions and services to consumers and businesses. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. HP completed its acquisition of Compaq Computer Corporation on May 3, 2002. More information about HP is available at http://www.hp.com.

This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause the results of HP and its consolidated subsidiaries to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include employee management issues; the timely development, production and acceptance of services and their feature sets; the challenge of managing asset levels, including inventory; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to HP's annual report on Form 10-K for the year ended October 31, 2002, as filed with the Securities and Exchange Commission on January 21, 2003, and subsequently filed reports. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, HP's results could differ materially from HP's expectations in these statements. HP assumes no obligation to update these forward-looking statements.

CONTACT: HP
             Tim Marklein, 650/236-4525
             
Email Contact
             Rebeca Robboy, 650/857-2064
             
Email Contact



Review Article Be the first to review this article

Featured Video
Jobs
MECHANICAL ENGINEER for VEi Global, Inc. at Fargo, North Dakota
Field Sales Engineer - Instruments and Valves for Miller Mechanical Specialties at Mendota Heights, Minnesota
Mechanical Engineer with Mobile Equipment Experience for Specsys inc at Montevideo, Minnesota
Senior Engineer for Specsys inc at Montevideo, Minnesota
GIS Analyst for Dekalb County at Decatur, Georgia
Water Quality Analyst for City of Arvada at Arvada, Colorado
Upcoming Events
The NAMM Show 2019 at Anaheim Convention Center Anaheim CA - Jan 24 - 27, 2019
Design & Manufacturing 2019 at Anaheim Convention Center Anaheim CA - Feb 5 - 7, 2019
SOLIDWORKS World 2019 at Dallas TX - Feb 10 - 13, 2019
The MFG Meeting 2019 at JW Marriot Starr Pass Hotel & Spa Tucson AZ - Mar 6 - 9, 2019
Kenesto: 30 day trial
SolidCAM: See It Live
MasterCAM



Internet Business Systems © 2019 Internet Business Systems, Inc.
25 North 14th Steet, Suite 710, San Jose, CA 95112
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise