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HP Annual Report, Year Ended Oct 31, 1993

Filing Date
Filed January 28, 1994
Period End
October 31, 1993
Security
HPQ
In the record · 2016–202610-K1310-Q338-K140

HPQ filed 13 annual reports (10-K), 33 quarterly reports (10-Q) and 140 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Sep ’17Sep ’17
  2. Restructuring8-K · Oct ’19Oct ’19
  3. Leadership change8-K · Nov ’21Nov ’21
  4. FY2025 annual report10-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 10-K filed January 28, 1994. Cited figures are marked; the original filing is the authoritative source.

Hewlett-Packard Company's fiscal 1993 Form 10-K (fiscal year ended October 31, 1993) reports net revenue of $20.3 billiona, up from $16.4 billion in 1992, and net earnings of $1.18 billion, or $4.65 per share, versus $549 million, or $2.18 per share, in 1992.

The filing states that 1993 orders rose 24 percent to $20.8 billionb, with U.S. orders up 25 percent and international orders up 23 percent. Equipment revenue grew 26 percent and service revenue grew 18 percent. Earnings from operations were $1.88 billion, and the 1992 results included a one-time $332 million after-tax charge for a change in accounting for retiree medical benefits and special charges of about $137 million before taxes.

The company reported cash and short-term investments of $1.6 billionc at October 31, 1993, and total assets of $16.7 billion. Operating cash flow was $1.1 billion, down from $1.3 billion in 1992, which the filing attributes mainly to a substantial increase in inventory. Capital expenditures were $1.4 billion, and notes payable and short-term borrowings rose to $2.2 billion.

Cost of equipment sold and services was 59.7 percent of net revenue, compared with 55.8 percent in 1992, and the filing says pricing pressure and product mix put upward pressure on cost of sales. Research and development spending reached $1.8 billiond, or 8.7 percent of net revenue. The filing states that the company had about 96,200 employees at October 31, 1993, and it describes itself as the second-largest U.S.-based manufacturer of general-purpose computers, personal peripherals and calculators.

Most of the financial information is incorporated by reference from the 1993 Annual Report to Shareholders, which is included in this filing as Exhibit 13. The company reports no pending legal proceedings beyond routine litigation, and environmental expenditures are described as not material.

02—Key points

Key Highlights

  1. Net revenue rose to $20.3 billion in fiscal 1993 from $16.4 billion in fiscal 1992.
  2. Net earnings were $1.18 billion, or $4.65 per share, compared with $549 million, or $2.18 per share, in 1992, which included a $332 million after-tax accounting change charge.
  3. Orders increased 24 percent to $20.8 billion, with U.S. orders up 25 percent and international orders up 23 percent.
  4. Equipment net revenue grew 26 percent and service revenue grew 18 percent.
  5. Cost of equipment sold and services rose to 59.7 percent of net revenue from 55.8 percent, driven by pricing pressure and product mix.
  6. Operating cash flow fell to $1.1 billion from $1.3 billion, mainly because of higher inventory, while capital expenditures reached $1.4 billion.
  7. Cash and short-term investments totaled $1.6 billion at October 31, 1993, and the company had about 96,200 employees.

03—Questions

Frequently Asked Questions

  1. How did Hewlett-Packard perform financially in fiscal 1993?

    Net revenue reached $20.3 billion, up from $16.4 billion, and net earnings were $1.18 billion, or $4.65 per share, compared with $549 million, or $2.18 per share, in 1992. The 1992 figure was reduced by a one-time $332 million after-tax charge for a change in accounting for retiree medical benefits.

  2. What drove the growth in orders and revenue?

    The filing states that orders rose 24 percent to $20.8 billion, with U.S. orders up 25 percent and international orders up 23 percent. It attributes strong demand to peripheral products such as the HP LaserJet and HP DeskJet printers, workstations, UNIX-based multiuser systems and 486-based Vectra PCs. Equipment revenue grew 26 percent and service revenue grew 18 percent.

  3. Are there any margin or cash flow concerns?

    Cost of equipment sold and services increased to 59.7 percent of net revenue from 55.8 percent, and the filing says pricing pressure and product mix are likely to continue to pressure cost of sales. Operating cash flow fell to $1.1 billion from $1.3 billion, which the filing attributes mainly to a substantial increase in inventory.

  4. How strong is the company's financial position?

    At October 31, 1993, the company had cash and short-term investments of $1.6 billion, total assets of $16.7 billion and shareholders' equity of $8.5 billion. Notes payable and short-term borrowings were $2.2 billion, and the company had unused credit lines and authorized but unissued commercial paper totaling $1.3 billion.

  5. What do the filing and its exhibits say about legal and environmental matters?

    The filing states that no legal proceedings are pending other than routine litigation incidental to the business. It also says the company is involved in Superfund and similar state environmental proceedings and conducts remediation at several sites, but that environmental expenditures are not material to its operations or financial position.

04—Continue

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