Feeds

HP profits plummet 66 per cent

Q3 forecasts trimmed

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Hewlett-Packard has cut sales targets for the current quarter, while reporting a 66 per cent profit drop in Q2.

The US vendor yesterday recorded net income of $319 million for the quarter ended April 30, compared to $935 million for the same period the previous year. Revenue dropped four per cent to $11.6 billion.

HP blamed sluggish demand in the US and Europe, along with internal structural changes.

The company said home PC sales fell 15 per cent "due primarily to weak demand and associated pricing pressures in North America". Unix server revenues dropped 13 per cent, while PC server revenues were down four per cent.

Sales from its IT services business grew nine per cent, while printer sales dropped three per cent.

HP also chopped its outlook for Q3. "Looking forward to the third quarter, we believe current consensus EPS estimates are reasonable," said HP CEO Carly Fiorina.

"However, given continuing deterioration in key economic indicators and increasing global uncertainty, we think broadening the revenue range slightly from flat to flat to down five per cent is prudent," she added.

HP had already issued two profit warnings this year - just last month Fiorina said the US downturn was spreading to Europe, and warned Q2 sales would be between two and four per cent less than the previous year. At the same time it also announced plans to chop 3,000 jobs in a bid to reduce costs. ®

Related Stories

Consumer slowdown forces HP to axe 3,000 jobs
HP slashes Q1 forecasts

Choosing a cloud hosting partner with confidence

More from The Register

next story
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
4chan outraged by Emma Watson nudie photo leak SCAM
In the immortal words of Shaggy, it wasn't me us ... amirite?
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.