HP printing group sees 15% year-over-year revenue decline for fiscal Q4
HP disclosed fiscal fourth-quarter net revenues of $6.5 billion for its Imaging and Printing Group, a 14% increase from the $5.7 billion recorded during the company's fiscal third quarter but a 14.8% decrease year over year from the $7.6 billion of last year's Q4. For FY 2009, HP reported net revenues of $24 billion for imaging and printing, a decrease of nearly 19% from the $29.6 billion reported last fiscal year.
The division reported earnings of $1.71 billion for the fiscal fourth quarter, an increase of 21% from its fiscal Q3 earnings of $960 million, and a 1.4% increase over the $1.16 billion reported during 2008's fiscal Q4. The unit's year-long earnings, reported at $4.3 billion, decreased 5.5% from the $4.6 billion reported last year.
During the quarter, supplies revenue was down 8%, commercial hardware revenue dropped 32% and consumer hardware revenue fell 17%. Printer unit shipments decreased 20%, commercial printer hardware units were down 38% and consumer printer hardware units decreased 14%, according to HP earnings, released November 23.
Overall, the company reported fiscal fourth-quarter net revenues of $30.8 billion, a decrease of 8% year over year from Q4 2008's $33.6 billion. For the 2009 fiscal year, HP saw revenues of $114.6 billion, a drop of 3% from FY 2008's $118.4 billion. The revenues were in line with expectations the company released earlier this month.
The company also disclosed that its fiscal fourth-quarter revenues for the Americas dropped 3% to $13.6 billion, while revenues also decreased 17% in Europe, the Middle East and Africa to $11.7 billion and dropped 1% in Asia-Pacific to $5.4 billion.
HP predicted revenues of $29.6 billion to $29.9 billion for the fiscal first quarter of 2010, and full-year FY 2010 revenues of $118 billion to $119 billion. It had previously predicted 2010 revenues of $117 billion to $118 billion. The estimates do not reflect the potential impact of HP's acquisition of 3Com, announced earlier this month.
In August, HP reported revenues of $27.5 billion for Q3 2009, a net decline of 2% year over year. During that period, its imaging and printing group saw a 20% decline in revenue for a total of $5.7 billion, while printer shipments decreased 23%.
Earlier this month, HP announced it is beta-testing i-catcher, a behavioral tool that it plans to launch in March. In recent months, it has also announced printing-related partnerships with Pitney Bowes and RR Donnelley.