HP Board Authorizes Additional $2 Billion for Share Repurchases, Declares Regular Dividend
PALO ALTO, Calif., May 28, 2004
The board of directors of HP today authorized up to $2 billion in additional repurchases of its outstanding shares of common stock.
The company intends to use the authorization to repurchase shares opportunistically as a means of returning cash to its shareholders, as well as offsetting dilution from the issuance of shares under employee benefit plans.
"HP continues to generate strong cash flow from operations, with over $2.6 billion in the second quarter alone. This new authorization represents a strong vote of confidence in HP's future," said Bob Wayman, executive vice president and chief financial officer, HP.
The board also declared a regular cash dividend of 8 cents per share on the company's common stock. The dividend, the third in HP's fiscal year 2004, is payable on July 7, 2004, to shareholders of record as of the close of business on June 16, 2004.
HP has approximately 3 billion shares of common stock outstanding.
HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. For the four fiscal quarters ended April 30, 2004, HP revenue totaled $76.8 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.
This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause the results of HP and its consolidated subsidiaries to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include employee management issues; the timely development, production and acceptance of services and their feature sets; the challenge of managing asset levels, including inventory; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks that are described from time to time in the Quarterly Report on Form 10-Q for the fiscal quarter ended Jan. 31, 2004, and other Securities and Exchange Commission reports, filed after the Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2003. HP assumes no obligation and does not intend to update these forward-looking statements.