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HP Annual Report, Year Ended Oct 31, 1999

Filing Date
Filed January 27, 2000
Period End
October 31, 1999
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, 2000. Cited figures are marked; the original filing is the authoritative source.

Hewlett-Packard Company's annual report for the fiscal year ended October 31, 1999 shows net revenue of $42.37 billiona, up from $39.42 billion in 1998, and earnings from operations of $3.69 billion versus $3.40 billion.

Net earnings from continuing operations rose to $3.10 billionb from $2.68 billion, and diluted EPS from continuing operations was $2.97 versus $2.52. Net earnings including discontinued operations were $3.49 billion, or $3.34 per diluted share. The filing states that HP's financial position remained strong, with cash and short-term investments of $5.6 billion at year-end, long-term debt of $1.76 billion, and total assets of $35.30 billion.

The most significant structural development is the planned spin-off of Agilent Technologies, which comprises HP's test and measurement, semiconductor products, healthcare solutions and chemical analysis businesses. Agilent was reflected as a discontinued operation, and HP sold roughly 16 percent of its stock in an initial public offering on November 23, 1999, with HP retaining the remaining shares for planned distribution to stockholders by July 31, 2000. HP's three continuing segments are Imaging and Printing Systems (net revenue of $18.90 billionc, earnings from operations of $2.31 billion), Computing Systems ($18.44 billion and $856 million), and IT Services ($5.92 billion and $636 million).

The filing also notes that Computing Systems' operating margin improved to 4.6 percent from 2.9 percent, while IT Services' margin fell to 10.8 percent from 15.0 percent. Management reported that Year 2000 issues had caused no significant disruption through the first week of 2000, and that the company repurchased 31 million shares for $2.6 billiond during 1999.

02—Key points

Key Highlights

  1. Net revenue rose to $42.37 billion in fiscal 1999 from $39.42 billion in fiscal 1998, and net earnings from continuing operations increased to $3.10 billion from $2.68 billion.
  2. Diluted EPS from continuing operations was $2.97 in 1999 versus $2.52 in 1998; total diluted EPS including discontinued operations was $3.34.
  3. Imaging and Printing Systems was the largest segment, with net revenue of $18.90 billion and earnings from operations of $2.31 billion, up from $17.05 billion and $2.05 billion.
  4. HP sold about 16 percent of Agilent Technologies in a November 23, 1999 IPO, raising net proceeds of $2.1 billion distributed to HP, and plans to distribute its remaining 84 percent to stockholders by July 31, 2000.
  5. Computing Systems' earnings from operations rose to $856 million from $515 million, while IT Services' fell to $636 million from $785 million.
  6. Cash and short-term investments increased to $5.6 billion at October 31, 1999 from $4.1 billion, and operating cash flow was $3.1 billion.
  7. HP repurchased 31 million shares for $2.6 billion in 1999, and the board authorized an additional $2.0 billion in November 1999, bringing remaining authorization to $3.4 billion.

03—Questions

Frequently Asked Questions

  1. How did HP's revenue and earnings change in fiscal 1999?

    Net revenue increased to $42.37 billion from $39.42 billion, and earnings from operations rose to $3.69 billion from $3.40 billion. Net earnings from continuing operations increased to $3.10 billion from $2.68 billion, and net earnings including discontinued operations were $3.49 billion.

  2. What is the Agilent Technologies spin-off?

    Agilent Technologies comprises HP's test and measurement, semiconductor products, healthcare solutions and chemical analysis businesses. HP sold about 16 percent of its shares in an IPO in November 1999 and plans to distribute its remaining shares to stockholders by July 31, 2000, though the filing states the distribution is not obligatory and may not occur.

  3. Which business segments drove HP's results?

    Imaging and Printing Systems generated $18.90 billion of net revenue and $2.31 billion of earnings from operations. Computing Systems generated $18.44 billion and $856 million, and IT Services generated $5.92 billion and $636 million.

  4. How strong is HP's balance sheet?

    At October 31, 1999, HP had total assets of $35.30 billion, long-term debt of $1.76 billion, and total stockholders' equity of $18.30 billion. Cash and short-term investments were $5.6 billion, and HP had an unused committed borrowing facility of $1.0 billion.

  5. What did HP say about Year 2000 issues?

    HP reported that its operations were fully functioning through the first week of 2000 without significant Year 2000 issues, and that customers had reported no consequential incidents. The company estimated total internal IT readiness spending of approximately $160 million over the multi-year program.

04—Continue

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