HP profit falls 44 per cent amid weak PC sales
- 23 February, 2012 09:08
Hewlett-Packard's profit dipped sharply in the first quarter as consumers slowed spending on its PCs and printers, HP announced Wednesday.
Revenue from HP's massive Personal Systems Group, which sells PCs and workstations, declined 15 per cent from last year to $US8.9 billion, HP said. Sales to consumers dropped by a quarter from last year, while sales of business PCs slid 15 per cent.
HP's Imaging and Printing Group also fared poorly. Revenue was down 7 per cent to $6.3 billion, HP said, with sales to consumers hit hardest.
HP is trying to reinvigorate itself after a difficult year in which it said it might spin off its PC division and then changed its mind, and in which it made an ill-fated foray into the tablet market, only to give up on it some months later.
HP met its own profit goals for the quarter, President and CEO Meg Whitman said in a statement, and is "taking the necessary steps to improve execution."
Whitman took the helm of HP last September after the board ousted former CEO Leo Apotheker, who lasted in the job less than a year. This was HP's first full quarter under the former eBay chief.
Total revenue for the quarter, ended January 31, was $US30 billion, down 7 per cent from last year, HP said. Net profit was $US1.5 billion, down 44 per cent, or earnings per share of $US0.73.
Before one-time charges, HP's earnings would have been $US0.92 per share, better than the $US0.87 analysts had been expecting, according to a poll by Thomson Reuters, and in line with HP's earlier guidance.
HP's other big division, its services group, grew revenue just 1 per cent year-over-year to $US8.6 billion. Revenue from enterprise storage and servers fell 10 per cent, while revenue from software grew 10 per cent.
For the second quarter under way, HP expects earnings before one-time items of $US0.88 to $US0.91 per share, it said, slightly below the analyst forecast. It left its target for the full year unchanged, expecting at least $US4 per share.
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.
Queensland government to provide 200 services online by 2015
Call Centers Suffer From Big Data Overload
CIO 100: Carsales wins top gong for innovation
How to secure passwords and other critical numbers
Australian National University streamlines IT
Eight Simple Steps to Boost Campaign Results Using Predictive Modelling
Marketers today are consumed by big data, struggling to find meaning and under pressure to use that meaningful data in smart ways to boost results. But many organizations are reluctant to try and use predictive modelling in their campaigns, due to unfamiliarity and the dependence on complex tools – yet with modern, marketing-friendly modelling tools, integrated with campaign management, it is easier than you think. This whitepaper demonstrates how predictive modelling plays a critical role in streamlining the selection process.
Is your data centre growing too complex for your backup?
Backing up data today is growing more complex - and in an era of virtualisation, big data and cloud deployments, it can be difficult to maintain control over your data, resulting in loss and downtime. This hour-long webcast features expert commentary on navigating the complexity of backing up a heavily virtualised infrastructure; simplifying your backup software and hardware ecosystem; reducing the cost of backing up your organisation’s data, and modernising your backup infrastructure with integration. The presentations will conclude with an interactive Q&A session.
Casestudy: Managing an Antivirus Service and Improve the Customer Experience
Anittel Group has provided managed technology and connectivity services to organisations for more than 15 years, expanding to become one of the world’s largest full-service, IT and telecommunications companies. Previously, Anittel deployed an in-built antivirus solution as part of its managed service offering, which addressed a number of its customers’ needs, except for individual malware infections, which occurred as often as a several times a week. In this case study, find out what they did to solve this problem.