Tuesday, November 25, 2008

HP (NYSE HPQ) Printer Metrics, end-of-year FY08 edition

After the markets' close yesterday, HP (NYSE HPQ) announced its previously-pre-announced earnings for Fourth Quarter FY08. The overall numbers were quite heartening in this era of economic fear and doubt (see "Hewlett-Packard confirms earnings, backs outlook"), and the numbers from Imaging and Printing Group (details below) was more of a mixed bag.

Fourth-quarter IPG revenues actually declined one percent, compared to Q407, and with the company's overall revenues continuing to show very healthy increases, the printer unit's proportion of company sales shrinks again. Margins, however, remain robust for IPG, contributing nearly half of HP's profit dollars.

And it's always interesting to see which details HP chooses to share about the business. Color laser printers were reported as DOWN a few percentage points, but with HP's emphasis on its inkjet technologies both high and low, one wonders if this is a bragging point (lower lasers mean higher inkjet sales?). Both consumer and commercial hardware units showed year-to-year sales declines, and with supplies up another 9%, that category now represents nearly two-thirds (64%) of overall IPG revenues. And HP's interest in wireless printers (see "HP is Wild About Wireless") is confirmed by its inclusion in the metrics matrix for the first time.

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