INDUSTRY

HP today announced that it has raised its financial guidance for the fiscal second quarter ended April 30. Based on preliminary data, HP expects to announce on May 16 – when its second quarter results are scheduled to be released – that it recorded revenue in the range of $25.50 billion to $25.55 billion, non-GAAP diluted earnings per share (EPS) in the range of $0.69 to $0.70, and GAAP EPS in the range of $0.64 to $0.65. Non-GAAP diluted EPS estimates exclude after-tax costs of approximately $0.05 per share, related primarily to the amortization of purchased intangible assets. The increase in second quarter revenue and EPS guidance was driven by strong operational results in the Personal Systems Group and in industry-standard servers. In addition, EPS benefited from higher levels of share repurchases during the quarter. The company stated previously that it anticipated revenue of approximately $24.5 billion, non-GAAP diluted EPS in the range of $0.63 to $0.64 and GAAP diluted EPS in the range of $0.57 to $0.58. In the second fiscal quarter of 2006, HP recorded revenue of $22.6 billion. It also reported non-GAAP diluted EPS of $0.69 and GAAP diluted EPS of $0.66, both of which included the effect of a favorable tax settlement of $0.15. HP estimates third quarter 2007 revenue of approximately $23.7 billion to $23.9 billion, non-GAAP EPS in the range of $0.63 to $0.65, and GAAP diluted EPS in the range of $0.59 to $0.61. Non-GAAP diluted EPS guidance excludes after-tax costs of approximately $0.04 per share, related primarily to the amortization of purchased intangible assets. The decision to issue updated guidance follows the inadvertent disclosure of financial information relating to HP’s recently completed second fiscal quarter through an internal email sent Monday evening to a single outside party. The company determined that the most prudent course of action under these unusual circumstances was to publicly release updated revenue and earnings guidance for that quarter prior to the market’s open Tuesday.