HP Revenues Hurt by Slowing PC, Server Demand
CEO Meg Whitman says that despite the difficult quarterly numbers, the multi-year turnaround strategy is making progress.Hewlett-Packard CEO Meg Whitman says the multi-year turnaround of the tech giant is continuing to move forward, despite setbacks in the company’s latest quarterly financial numbers. HP saw its fiscal third-quarter revenues hit $27.2 billion, a drop from the $29.7 billion from the same period in 2012 as the contracting global PC market continues to hammer the company, and its Enterprise Group struggled with a competitive market and execution missteps. Net income hit $1.39 billion, a significant jump from the $9.8 billion loss from a year ago, which was due in large part to a significant write-down HP took for its $13.9 billion acquisition of services company EDS in 2008. Given the financial numbers, Whitman—who had been hopeful of growth in fiscal year 2014—told analysts and journalists on a conference call Aug. 21 that she no longer expected year-over-year revenue increases for the year.
She noted that some HP businesses—including printers, enterprise services and software—had a strong quarter, though revenues were down in every segment except software. However, much of the focus fell on the PC business and Enterprise Group, which is responsible for the company’s broad server, storage and networking offerings.