by CIO Staff

HP Gets $443M Boost from Tax Settlement

Jun 07, 20061 min

A positive tax settlement led Hewlett-Packard (HP) to revise upward its previously announced financial results for the second quarter, the company announced Tuesday.

HP reached a settlement with the U.S. Internal Revenue Service (IRS) last week regarding its tax returns from 1996 to 1998, boosting net income for the three months ending April 30 by US$443 million, or $0.15 per share, HP said. Net income for the quarter was revised to $1.9 billion, or $0.66 per share.

As a result of the change, HP, of Palo Alto, Calif., also revised its forecast for its full-year results. It now expects net earnings per share in the range of $2.02 to $2.06, it said.

The settlement was signed by the IRS after HP’s second quarter ended, the company said.

-Steven Schwankert, IDG News Service

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