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HP Q4 profit plunges 91%

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Press Trust of India New York

Technology giant HP has reported a whopping 90.58% plunge in its profit to $239 million for the fourth fiscal quarter, ended October 31, 2011, and has issued a cautious outlook for the current fiscal.

In the year-ago qaurter, the company had a net income of $2.53 billion, HP said in a statement last night. The company's net revenues declined by 3% from the year-ago period to $32.1 billion in the quarter.

Full the full fiscal year ended last month, HP posted a net revenue of $127.2 billion, up one% from the previous year.

Its net income dipped to $7.07 billion in FY 2010-11, from $8.71 billion during the previous year.

 

The technology giant also issued a cautious outlook for the new financial year, saying "We are remaining cautious heading into FY12 but are focused on delivering our earnings outlook and driving shareholder value."

The company's executive vice president and chief financial officer Cathie Lesjak said, "We need to get back to the business fundamentals in fiscal 2012, including making prudent investments in the business and driving more consistent execution."

During the fourth quarter, HP's services business grew 2% to $9.3 billion from a year earlier. However, revenue in the company's server group tumbled by 4% to $5.7 billion and its printer business fell 10% to $6.3 billion.

 In terms of geographic regions, emerging countries performed well. Bric countries such as Brazil, Russia, India and China have collectively registered a revenue of $3.8 billion, up 9% over the year-ago period. In addition, Asia Pacific region generated a revenue of $6 billion, representing a 3% increase year over year.

However, revenues from Europe, West Asia and Africa decelerated by 6% to $11.7 billion and Americas witnessed a decline of 4% to $14.5 billion.

For the first quarter of fiscal 2012, HP expects an earning per share in the range of $0.61-0.64 and projects an earning per share of about $3.20 for the full fiscal year.

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First Published: Nov 22 2011 | 3:34 PM IST

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