HP CEO Meg Whitman fails to impress as revenue dips again

HP CEO Meg Whitman today painted a rosy picture for the devices and networking company’s future, saying its latest initiatives have set the stage for accelerated progress in FY 2015 and beyond.

But the company could not report growth in both revenue and net income for Q4 fiscal 2014 and fiscal 2014.

HP said its revenue dipped 2 percent to $28.4 billion in Q4 fiscal 2014 and 1 percent to $111.5 billion in fiscal 2014. HP net income fell 6 percent to $1.3 billion in Q4 and 2 percent to $5 billion in 2014.

HP Q4 revenue fell 3 percent in Americas, mainly due to declines in the U.S. Revenue from EMEA was flat at $10.2 billion. APJ revenue dipped 5 percent to $5.3 billion. Japan contributed to about half of the regional decline. HP had a tough time in India related to the large PC deal won in the same period last year.

As part of its restructuring, HP said nearly 41,000 people exited the company by the end of fiscal year.

HP CEO Meg Whitman

HP said it posted strong performance in personal systems, industry standard servers and networking business.

HP personal

HP survived with 2 percent revenue decrease in Q4 because of a 4 percent increase in HP personal systems revenue to $8.9 billion. Commercial revenue increased 7 percent and consumer revenue dipped 2 percent. HP shipments rose 5 percent — desktops units fell 2 percent and notebooks units rose 8 percent.

Excluding personal systems – supported by business segment – all HP businesses showed negative growth.

Printing revenue dipped 5 percent. HP printing shipments fell 1 percent. Commercial hardware units rose 5 percent and consumer hardware units fell 4 percent.

HP Enterprise

HP Enterprise Group revenue dipped 4 percent to $7.3 billion. Industry Standard Servers revenue fell 2 percent, Storage revenue dropped 8 percent, Business Critical Systems revenue declined 29 percent, Networking revenue rose 2 percent and Technology Services revenue decreased 3 percent.

Enterprise Services revenue fell 7 percent. Application and Business Services revenue dipped 6 percent and Infrastructure Technology Outsourcing revenue declined 7 percent.

HP Software

HP Software revenue decreased 1 percent to $1.1 billion. License revenue was up 2 percent, support revenue was down 1 percent, professional services revenue was down 5 percent and software-as-a-service (SaaS) revenue was flat.

HP Financial Services revenue was down 1 percent.

How HP enterprise biz performed?

Within HP’s Enterprise Group, the revenue of industry standard server business fell 2 percent to $3.4 billion. Sales grew in EMEA and Asia, while Americas revenue declined.

Technology services revenue fell 3 percent to $2.1 billion, driven primarily by hardware revenue declines in business critical servers and storage. Total penetration rates declined, while improving across BCS and traditional industry standard servers.

HP Storage revenue dipped 8 percent to $878 million. “The market continues to shift from the high-end to the midrange in entry-level storage solutions, and we saw the shift reflected in the strong growth of our 3PAR midrange offerings,” said HP.

Converged storage declined 3 percent. 3PAR plus XP, plus EVA revenue declined 6 percent.

Networking revenue rose 2 percent to $669 million, driven by strong switching growth. HP posted strong growth in China in the fourth quarter, specifically in the data center.

HP Business critical servers’ revenue declined 29 percent to $238 million. This apart, HP Enterprise Services revenue dipped 7 percent to $5.5 billion. Full fiscal 2014 revenue was $22.4 billion, down 7 percent.

IT outsourcing revenue dipped 7 percent to $3.4 billion. HP applications and business services revenue fell 6 percent to $2.1 billion. Strategic Enterprise Services or services for the new style of IT grew revenue double-digits.

Baburajan K
[email protected]

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