On Tuesday, HP (Hewlett-Packard), the world's largest PC company by revenue, reported a 3.2% revenue fall for its fiscal second quarter ended April 30th and a profit of $1.72 billion, or 70 cents a share, compared with $2.06 billion, or 80 cents a share, a year earlier. HP said it will cut an additional 2% of its work force, or more than 6,000 jobs, over the coming year as it integrates EDS (Electronic Data Systems). The company has previously announced job cuts of about 25,000 jobs because of the deal.
HP said revenue was $27.35 billion, compared with $28.26 billion a year ago.
HP maintained its profit projections for the fiscal year but said revenue will likely fall 4% to 5%, compared with a previous forecast for a 2% to 5% fall.
For the second quarter, HP had a profit of $1.72 billion, or 70 cents a share, compared with $2.06 billion, or 80 cents a share, a year earlier. Revenue was $27.35 billion, compared with $28.26 billion a year ago.
“Disciplined focus on operational efficiencies and execution drove record cash flow,” said
Mark Hurd, HP chairman and chief executive officer. “Our services business continued to deliver strong profitability with an increased deal pipeline and the
EDS integration tracking ahead of schedule.”
Revenue grew 9% in the Americas to
$12.1 billion. Revenue declined 11% in
Europe, the Middle East and Africa and 10% in Asia Pacific to
$10.6 billion and
$4.7 billion, respectively. When adjusted for the effects of currency, revenue grew 12% in the Americas while declining 2% in Europe, the
Middle East and Africa and 5% in Asia Pacific.
Revenue from outside of
the United States in the second quarter accounted for 64% of total revenue, with revenue in the BRIC countries Brazil,
Russia,
India and
China) declining 12% over the prior-year period while accounting for 9% of total HP revenue.
Results detail
Worldwide sales of PCs fell in the first quarter of 2009 but the US market performed better than other regional markets, US IT research firms IDC and Gartner reported. IDC said worldwide shipments of desktop and portable PCs fell 7.1% in the first three months of the year compared with last year while Gartner said they dropped 6.5% in the quarter to 67.2 million units. HP overtook Dell in the US and maintained its No. 1 position globally.
