Hewlett-Packard Co reported first-quarter numbers that just missed expectations, and the company is pointing the finger at softer-than-expected revenue due to foreign currency expense. Still, net income hit a record high by rising 2% to $929m on revenue up 15% at $11.82bn. Earnings per share for the quarter fell to $0.86 – when the First Call consensus was $0.88 – from $0.87 a year ago, due to a slight increase in shares outstanding, mainly stemming from the company’s acquisition of VeriFone Inc. Total orders for the quarter were $12.4bn, up from $11.0bn last year. US orders rose 27% to $5.3bn, while international orders rose 4% to $7.1bn. HP has warned it is consolidating it US inkjet manufacturing operations in the US which will result in a reduction of jobs and assets. About 1,000 jobs will be affected but the company says it will offer them employment elsewhere at HP. The consolidation is expected to negatively impact fiscal 1998 by a total of $0.07 per share – with a $0.05 hit in the second quarter and $0.02 in the third.
