HP announced profits of $2.7 billion on sales of $33.6 billion

PALO ALTO, Calif., Nov 24, 2008 (BUSINESS WIRE) --

--Fiscal 2008 net revenue up 13%, or $14.1 billion, to $118.4 billion

--Fourth quarter GAAP operating profit up 4% to $2.7 billion; $0.84 earnings per share, up from $0.81 a year earlier

--Fourth quarter non-GAAP operating profit up 21% to $3.4 billion; $1.03 earnings per share, up from $0.86 a year earlier

--Fourth quarter cash flow from operations of $3.3 billion; fiscal 2008 cash flow from operations of $14.6 billion, up 52% from a year earlier

--Closed EDS acquisition; integration on track

HPQ 35.70, +1.06, +3.1%) today announced financial results for its fourth fiscal quarter ended Oct. 31, 2008, with net revenue of $33.6 billion, up 19% from a year earlier and up 16% when adjusted for the effects of currency. Excluding EDS revenue, net revenue grew 5% year over year or 2% when adjusted for the effects of currency.

Imaging and Printing Group

Imaging and Printing Group (IPG) revenue declined 1% to $7.5 billion. Supplies revenue grew 9%, while Commercial hardware revenue and Consumer hardware revenue declined 10% and 21%, respectively. Printer unit shipments decreased 8%, with Consumer printer hardware units down 8% and Commercial printer hardware units down 9%. Operating profit was $1.2 billion, or 15.5% of revenue, versus $1.1 billion, or 14.5% of revenue, in the prior-year period.

"HP capped off a strong year by delivering another solid quarter led by strength in our services segment and disciplined expense management," said Mark Hurd, HP chairman and chief executive officer. "Our global reach, broad portfolio, numerous cost initiatives and consistent execution differentiate HP in the current economic environment."

Xerox and The Magic Paper -

"Re-usable" paper -

Recently, from an article in Newsweek, I read about Xerox and magic.

Magic Paper. To be precise - ultraviolet light paper.

Sophie Vanderbroek, who I wrote of back in May, presents this paper by writing an 'x' with an ultraviolet light pen and the 'x' appears - then she heats the paper with a hair dryer and the 'x' dissolves; just like the old Xerox logo...

It's another effort by Xerox to someday help people conserve paper because the Magic Paper is reusable.

Says Sophie, ""We're the company that created information overload," For years everyone one has talked about the paperless office,but as most of us know, consumption of paper has increased 40 percent. "We're looking for radical solutions [by] asking ourselves, 'What does it mean to be radically green?' " Vandebroek says.

Here's the "411" on the technology behind the Magic Paper -

"The paper developed by Xerox includes photochromic compounds (such as spiropyran) which exhibit heliochromic properties. That is, they darken when exposed to U.V. radiation and fade in the absence of U.V. light. Photochromic compounds are used in the manufacturing of certain sunglasses due to their ability to darken and regain their transparency quickly. However, a distinct difference from sunglasses is that Xerox’s erasable paper can remain darkened for many hours. The U.V. light source, called a light bar, is integrated into a printer which illuminates specific parts of the erasable paper, creating the desired text or image on the paper. The printer can also erase the paper using a different wavelength—making the paper reusable..."

It's all About the Molecules -

The paper contains specially-coded molecules that create a print after being exposed to ultraviolet light emitted from a thin bar in a printer. The molecule readjusts itself within 24 hours to its original form to delete the print, or heat can readjust the molecule instantly. The molecule was developed by Xerox - Agam Shah, Techworld

And It's all About Being Green to Make Green -

In an expanding effort for companies to "out green" each other it looks like all things business can be "Greenified" - and all green projects will save money.

From the Newsweek article -


"Some of the savings arise from pretty simple stuff. Instead of giving each worker a desktop printer, for example, companies can consolidate and use networked printers. They'll install multifunction machines that can replace separate printers, copiers and fax machines. Another trick: create a print-on-demand system for brochures, forms and other corporate literature, to avoid printing up thousands of copies and storing them until they are needed—or thrown out when they're not. Owens Corning outsourced its print operations to Xerox and saved $1.5 million a year by adopting a print-on-demand strategy. Its system now lets building contractors go online to print customized brochures about Owens Corning products. That saves money for Owens Corning and also lets contractors deliver material that's tailored to each customer..."

"I'm in a funny business—I'm looking for ways that companies can print less," says John Kelly, president of global services at Xerox. "Printing is not going to go away, but we think you have to print more efficiently, and when you do print, print stuff that's relevant. We know that if we do that we can continue to grow."

And Wall Street agrees, "We care about how it positions them competitively, and customers are asking for it. So at the very least it's good marketing," says Shannon Cross, analyst at Cross Research, an independent stock-research firm.

The biggest reason that green solutions are popular is that they're really about saving money, says Angèle Boyd, analyst at researcher IDC. "Frankly, what the customer is benefiting from is a reduction in cost, but at the same time they get the benefit of a reduction in their carbon footprint," Boyd says.

Vandebroek says, "It's still a research project," and she is also the one who said, "...within the research and development community at Xerox, we no longer do any work on photocopiers..."

Five Reasons HP Is OutPerforming The Market

I grabbed this post off of the Blog over at Channel Web

BLOGS
The Channel Wire
November 18, 2008

Five Reasons HP Is OutPerforming The Market

With many technology companies posting disappointing results in the midst of the economic downturn, Hewlett-Packard Tuesday released an upbeat preliminary fourth-quarter forecast.

The world's largest supplier of IT products and services said its expects that revenue for the quarter ended Oct. 31 jumped 19 percent and earnings grew 4 percent. HP shares were up 10 percent or $2.96 to $32.31 in midday trading on the good news.

HP gave no details on specific product segments or geographies but said its revenue for the period ended Oct. 31 reached $33.6 billion, a 19 percent jump over year-earlier sales. For the year, net revenue was up 13 percent to $118.4 billion. The sales figures exclude the impact of HP's recent acquisition of EDS.

Here are five reasons HP is outperforming the market.

1. HP CEO Mark Hurd

He isn't infallible or the new Messiah, but he is pretty darn good. He's made a string of key acquisitions this year, capped off by EDS and LeftHand Networks. But his most important trait is that he's constantly visiting and listening to customers. And he keeps his closest counsel with his biggest customer: the channel. Hurd regularly makes one-on-one visits to solution providers both large and small. He asks questions. He listens. He motivates. No other CEO of a major technology company keeps as close to the channel as Hurd.

2. HP's Diverse Product Portfolio

From the desktop to the data center. From printers to routers. From network management to asset management software. HP products span the technology spectrum. At $118 billion, this is truly a one-stop shop. And now with its $13.9 billion acquisition of services giant EDS, HP has the people power and services muscle to do it all. Take note that even with the biggest and broadest portfolio in the business and a boatload of services people, HP embraces the channel. Bottom line: HP gets that it's a solutions game. And solutions means channel.

3. Committed Channel

HP has worked hard over the past several years to hone its channel strategy to focus on a mutually profitable relationship with solution providers. It hasn't always succeeded or delivered on its promises, but it's shown a willingness to fix things on the fly rather than letting channel problems fester. it is the biggest and yet it is the most channel-cognizant. One big reason is that Hurd views the channel as an extended sales force. He understands sales and he wants his partners out there in the front lines winning over new customers.

4. Maniacal Focus On Profitable Growth

No other company right now has a sharper focus on profitable growth than HP. Hurd is closing out his fourth year at the company and his drive and determination to do things more efficiently and profitably in everything HP does has resulted in a new and more inventive HP. That "profitable growth" mantra has everyone at HP working toward a common goal. It's a, 'Hit your number or hit the road,' proposition. That is a good thing, especially as we come into what looks like the worst economic downturn since the Great Depression. Look for HP to buck the trend and beat the bad news blues.

5. Full Speed Ahead With R & D

Based on his long list of acquisitions, some observers might think Hurd's R&D budget consists in snapping up smaller, innovative companies. Not so. HP has remained on top of the technology heap in part because of its willingness to invest in product innovation. The company's multibillion-dollar R&D effort and the company's cultural legacy of building better products is a huge differentiator. HP products are more often than not better engineered, designed and performing than the competitive product sets. Take Blades. "Blade everything" isn't just a marketing slogan at HP; it's a technology commitment.

---------- End Post ------

Points 1 and 3 resonate- Hurd and the Channel, great combo...