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HP Annual Report, Year Ended Oct 31, 1994

Filing Date
Filed January 27, 1995
Period End
October 31, 1994
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 27, 1995. Cited figures are marked; the original filing is the authoritative source.

Hewlett-Packard Company, together with its consolidated subsidiaries, reported fiscal 1994 (year ended October 31, 1994) net revenue of $24.99 billiona, up from $20.32 billion in fiscal 1993, and net earnings of $1.60 billion, or $6.14 per share, compared with $1.18 billion, or $4.65 per share, in 1993.

Earnings from operations rose to $2.55 billionb from $1.88 billion. Total orders were $25.35 billion, and the filing states that net revenue growth was 23 percent, with net earnings up 36 percent. Equipment revenue was $19.31 billion and services revenue was $5.68 billion.

The company reported that cost of equipment sold and services rose to 62.0 percent of net revenue from 59.7 percent, while selling, general and administrative expense fell to 19.7 percent of net revenue from 22.4 percent. The balance sheet at October 31, 1994 showed total assets of $19.57 billionc, cash and cash equivalents of $1.36 billion, and short-term investments of $1.12 billion, against total shareholders' equity of $9.93 billion and long-term debt of $547 million. Operating activities generated $2.2 billion in cash, and capital expenditures were $1.3 billion.

Management described the financial position as strong, with $3.1 billiond in unused credit lines and authorized but unissued commercial paper. The company repurchased about 4.0 million shares in 1994 for approximately $325 million and had $255 million remaining under its repurchase authorization. The filing describes the company as engaged in the design, manufacture and service of electronic equipment and systems for measurement, computation and communications.

Research and development spending was $2.0 billion, or 8.1 percent of net revenue, and the company stated that pending legal proceedings were limited to routine litigation. The company had approximately 98,400 employees at October 31, 1994, and the filing describes it as the second-largest U.S.-based manufacturer of general-purpose computers.

02—Key points

Key Highlights

  1. Net revenue rose to $24.99 billion in fiscal 1994 from $20.32 billion in fiscal 1993, with the filing stating 23 percent growth.
  2. Net earnings were $1.60 billion, or $6.14 per share, up from $1.18 billion, or $4.65 per share, in fiscal 1993.
  3. Earnings from operations increased to $2.55 billion from $1.88 billion, and the filing states an increase of 36 percent.
  4. Total orders reached $25.35 billion, compared with $20.77 billion in 1993.
  5. Cost of equipment sold and services rose to 62.0 percent of net revenue from 59.7 percent, while SG&A fell to 19.7 percent from 22.4 percent.
  6. Balance sheet remained strong, with total assets of $19.57 billion, cash and short-term investments of $2.5 billion, and shareholders' equity of $9.93 billion.
  7. Operating cash flow was $2.2 billion, and the company repurchased about 4.0 million shares for approximately $325 million in 1994.

03—Questions

Frequently Asked Questions

  1. How did Hewlett-Packard's revenue and earnings perform in fiscal 1994?

    Net revenue was $24.99 billion, up from $20.32 billion in fiscal 1993, and net earnings were $1.60 billion, or $6.14 per share, compared with $1.18 billion, or $4.65 per share, a year earlier. The filing states that revenue grew 23 percent and net earnings grew 36 percent.

  2. What drove the growth in the company's business?

    The filing attributes strong growth to market acceptance of new products, including HP LaserJet and DeskJet printers, HP 9000 workstations and multiuser systems, and HP Vectra PCs. Equipment revenue rose to $19.31 billion from $15.53 billion, and services revenue rose to $5.68 billion from $4.78 billion.

  3. Is the company's financial position strong?

    Management describes the financial position as strong. At October 31, 1994, the company had cash and cash equivalents of $1.36 billion, short-term investments of $1.12 billion, and $3.1 billion in unused credit lines and authorized but unissued commercial paper. Long-term debt was $547 million.

  4. What are the main risks the company identified?

    The filing cites risks in developing and manufacturing new high-technology products on schedule, dependence on significant suppliers for integral sub-assemblies, growing reliance on dealer and indirect distribution channels, and exposure to earthquakes near key facilities. It also notes international risks such as currency fluctuations and foreign government policies.

  5. How is the company returning cash to shareholders?

    The company paid cash dividends of $1.10 per share in fiscal 1994, up from $0.90 in 1993, and totaling $280 million in dividends paid. It also repurchased about 4.0 million shares for approximately $325 million in 1994, and $255 million remained under its repurchase authorization at October 31, 1994.

04—Continue

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