HP swings to profit, but PC woes hit revenues
In results for the fiscal third quarter released on Wednesday (21 August), HP said its net profit was US$1.39bn, a turnaround from the same period last year when a massive writedown led to losses of US$8.9bn.
But revenues for the quarter fell eight percent from a year ago to US$27.2bn and PC sales floundered.
HP said consumer revenue for its personal systems unit which makes PCs declined 22%. Total unit sales were down eight percent, with desktop sales falling nine percent and notebooks 14%.
The California company has been in focus amid a severe slump in PC sales globally, as it has failed to adapt to a shift to mobile devices.
Meg Whitman, HP president and chief executive, said however the company achieved the financial performance it said it would and met analyst forecasts for profits.
"I remain confident that we are making progress in our turnaround. We are already seeing a significant improvement in our operations, we are successfully rebuilding our balance sheet, our cost structure is more closely aligned with our revenue and we have reignited innovation at HP, with a focus on the customer," Whitman said.
HP said it was shaking up its executive leadership team to help the company accelerate its turnaround.
Bill Veghte, currently chief operating officer, will become executive vice president and general manager of the HP Enterprise Group, which includes cloud computing. No one will be assigned to the chief operating officer's job. Veghte takes over from Dave Donatelli, who will take on a new role focused on identifying early-stage technologies, according to a statement from HP.
Source: AFP via I-Net Bridge
Source: I-Net Bridge
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