HP Back To Black
|PC giant turns a profit in q3 to July 31 after catastrophic losses, but CEO says its “unlikely” revenue will grow in fiscal 2014.
However, profits did improve to $1.4 bn – up from the massive $8.9 bn loss, announced a year prior.
Sales at HP, one of the world biggest PC makers, fell 8% to $27.2 billion. The drop was 7% when adjusted for currency effects.
The bad news is PC demand is rapidly slumping – revenues from Personal Systems group – one of its biggest earners – fell 11% with consumer PC’s down 22%, Desktops (- 9%), Notebooks (-14%).
HP’s other key units including Printing (-4%) and Enterprise (-9%) also fell.
Software was the only HP division to grow – rising 1%.
In a conference call to investors , CEO Meg Whitman noted “weak enterprise spending environment” and the “challenges” in enterprise group and personal systems” ahead, and said it is “unlikely” to grow sales in fiscal 2014.
Shares slid as much as 8% $23.34, reports Marketwatch.
“The fact that 2013 revenue from key accounts in enterprise services is running off more slowly than anticipated, we now expect that total company year-over-year revenue growth in fiscal 2014 is unlikely,”.
|However, HP boss insists she remains ‘confident that we are making progress in our turnaround,” citing cost cutting and new innovations.
We are already seeing 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.”
Cash flow down 6% to $2.7 billion. HP Returned $283 million to shareholders in the form of dividends and share repurchases