HP: Fiscal 3Q11 Financial Results

Storage only (without services)

(in $ millions)	3Q10	2Q11	3Q11
Revenues	904	980	976
*Q/Q growth*			-0%
Y/Y growth			8%

HP announced financial results for its third fiscal quarter ended July 31, 2011.

Storage reported revenues of $976 million for the quarter, compared to $904 million one year ago, and $980 million for the former three-month period, slightly down.

Catherine Lesjak, CFO, commented: "Our HP storage portfolio is in transition. Overall, HP storage revenue increased 8% over the prior year, driven by 17% growth in external disk products. Our products, based on StoreOnce data deduplication technology, had another strong quarter and 3PAR sales continue to accelerate, achieving triple-digit revenue growth year-over-year on a normalized basis. Partially offsetting growth in these key areas were year-over-year declines in our tape and EVA product lines."

"We are in the early days of the P6000 EVA launch and expect the product to be particularly attractive to two populations of customers, the EVA installed base and the customers in developing countries looking for key features offered by EVA: ease of everything, high quality and HP support that is available everywhere in the world," said Léo Apotheker, president and CEO.

Enterprise Servers, Storage and Networking revenues grew 7% year over year with a 13.0% operating margin.