PALO ALTO, Calif. – May 23, 2014 – Hewlett-Packard Company (NYSE: HPQ) and its subsidiaries have a net income of $1.273 billion for the second quarter of the fiscal year ended April 30, 2014. This is substantially higher than last year’s net income of $1.077 billion.
HP’s net revenue for the second quarter ended April 30, 2014, was $27.309 billion. This is lower than last year’s net revenue of $27.582 billion for the second quarter ended April 30, 2013.
“With the first half of our fiscal year completed, I’m pleased to report that HP’s turnaround remains on track,” HP President and Chief Executive Officer Meg Whitman said.
“With each passing quarter, HP is improving its systems, structures and core go-to-market capabilities. We’re gradually shaping HP into a more nimble, lower-cost, more customer- and partner-centric company that can successfully compete across a rapidly changing IT landscape.”
HP Increases Layoff Plan
In May 2012, HP adopted a multi-year restructuring plan designed to simplify business processes, accelerate innovation, lower costs and deliver better results. HP previously estimated that 34,000 positions would be eliminated in connection with the plan. As HP continues to reengineer the workforce to be more competitive and meet its objectives, the previously estimated number of eliminated positions will increase by 11,000 to 16,000.
HP’s Asset Management
HP generated $3.0 billion in cash flow from operations in the second quarter, down 16% from the prior-year period.
Inventory ended the quarter at $5.8 billion, down 1 day year over year to 25 days.
Accounts receivable ended the quarter at $14.3 billion, down 1 day year over year at 47 days.
Accounts payable ended the quarter at $13.5 billion, up 6 days year over year to 59 days.
HP’s dividend payment of $0.1452 per share in the second quarter resulted in cash usage of $298 million. HP also utilized $831 million of cash during the quarter to repurchase approximately 26.7 million shares of common stock in the open market.
HP exited the quarter with $15.4 billion in gross cash.
Hewlett-Packard Company creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. With the broadest technology portfolio spanning printing, personal systems, software, services and IT infrastructure, HP delivers solutions for customers’ most complex challenges in every region of the world.