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HP sees weakness in printing, enterprise services and software

Leadership

The slow road toward financial recovery continued Wednesday for Hewlett-Packard Co., reporting improved revenue but lower earnings for the third quarter.

Revenue for Q3 reached US$27.6 billion, up one per cent from the same quarter one year ago. And cashflow from operations reached US$3.6 billion, up 36 per cent over one year ago. While non-GAAP diluted net earnings per share were up three per cent, GAAP diluted net earnings per share were down 36 per cent.

Some US$881 million was returned to shareholders through share repurchases and dividends, and net operating cash sits at US$4.9 billion, a US$2.2 billion sequential improvement.

“Overall, I’m very pleased with the progress we’ve made,” said Meg Whitman, chairman, president and CEO of HP, in a statement. “When I look at the way the business is performing, the pipeline of innovation and the daily feedback that I receive from our customers and partners, my confidence in the turnaround grows stronger.”

When broken down by operating group, Printing revenue was down four per cent, Enterprise Services revenue dipped six per cent and Software revenue was down five per cent. On the positive side of the ledger, Personal Systems revenue grew by 12 per cent and Enterprise Group revenue rose two per cent.