HP shrugs off Hurd drama in financials

HP has reported net revenue of US$30.7 billion - up 11.4% - for its third fiscal quarter ending July 31th, 2010.

Earlier this month Chairman, Chief Executive Officer and President Mark Hurd resigned from HP after an investigation into a sexual harassment claim found he had submitted inaccurate expense reports.

Speaking about the financials, Cathie Lesjak, HP’s interim CEO following Hurd’s resignation, said, “The broad-based strength of HP's Q3 performance further demonstrates the power of our strategy and the discipline of our execution. We raised our full-year outlook and are continuing to build momentum in driving out costs, investing for profitable growth and capitalizing on HP's competitive advantages in the marketplace."

Third quarter highlights included:

• Third quarter net revenue of $30.7 billion, up 11.4%, or $3.1 billion, from a year earlier
• Third quarter GAAP operating profit up 5% to $2.3 billion; GAAP diluted earnings per share of $0.75, up 9% from $0.69 a year earlier
• Third quarter non-GAAP operating profit up 14% to $3.4 billion; non-GAAP diluted earnings per share of $1.08, up 17% from $0.92 a year earlier
• Broad-based year-over-year revenue growth driven by ESS at 19%, PSG at 17% and IPG at 9%
• Record services signings
• Solid year-over-year revenue growth across all regions

The Enterprise Storage and Servers division reported total revenue of US$4.4 billion, up 19%. Industry Standard Server revenue increased 31%, while Storage revenue increased 10% and Business Critical Systems revenue declined 15%. ESS blade revenue was up 29%. Operating profit was $549 million, or 12.3% of revenue, up from $381 million, or 10.2% of revenue, in the prior-year period.

You can find the full financial report here.

All prices are US$.