HP poor show continues in second quarter

HP CEO Meg Whitman did not bring good news this time as well.

Revenue of HP fell 7 percent to $25.5 billion for its fiscal 2015 second quarter ended April 30, 2015, while net income dropped 23 percent to $1 billion.

HP could not fight back during tough conditions and all its business divisions showed negative growth in terms of revenue in Q2.

However, the decline in the quarterly revenue of HP is line with the financial performance of IBM, one of the rivals of HP in the enterprise space. IBM last month said its net income dipped 5 percent in Q1 2015 to $2.4 billion, while revenue fell 12 percent to $19.6 billion.

On the other hand, Cisco, a key competitor of HP, said its Q3 revenue increased 5 percent to $12.1 billion, while net income grew 11.7 percent to $2.4 billion.

Meg Whitman, chairman, president and chief executive officer, HP, said: “Despite some tough challenges, we executed well across many parts of our portfolio, sustained our commitment to innovation, and delivered the results we said we would. HP is becoming stronger as we head into the second half of our fiscal year and separation in November.”

Meg Whitman, president and chief executive officer, HP
Performance of HP biz

HP Personal Systems revenue fell 5 percent. Commercial revenue dipped 7 percent, while Consumer revenue decreased 2 percent. Total units were up 2 percent with Notebooks units up 19 percent and Desktops units down 14 percent.

HP Printing revenue decreased 7 percent. Total hardware units fell 4 percent with Commercial hardware units up 1 percent and Consumer hardware units down 6 percent. Supplies revenue was down 5 percent.

HP Enterprise Group revenue fell 1 percent. Industry Standard Servers revenue grew 11 percent, Storage revenue dipped 8 percent, Business Critical Systems revenue dropped 15 percent, Networking revenue declined 16 percent and Technology Services revenue fell 8 percent.

Enterprise Services revenue decreased 16 percent. Infrastructure Technology Outsourcing revenue fell 20 percent, and Application and Business Services revenue declined 8 percent.

Software revenue fell 8 percent. License revenue dipped 17 percent, support revenue dropped 2 percent, professional services revenue declined 15 percent and software-as-a-service (SaaS) revenue reduced 5 percent.

Baburajan K
[email protected]

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