HP third quarter revenue dipped 8 percent to $27.2 billion. It made net profit of $1.4 billion in Q3 against net loss of $8.9 billion.
The company also announced changes in top management.
HP CEO Meg Whitman is confident about its strategies.
“I remain confident that we are making progress in our turnaround. 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 at HP, with a focus on the customer,” said Meg Whitman, HP president and CEO.
Outlook for the full year fiscal 2013
HP is confident of achieving its future earnings.
HP estimates non-GAAP diluted EPS to be in the range of $3.53 to $3.57 and GAAP diluted EPS to be in the range of $2.67 to $2.71, in line with HP’s previously communicated outlook.
HP’s main businesses — personal systems, commercial, consumer and enterprise posted dip in revenues.
HP’s personal systems revenue declined 11 percent with a 3 percent operating margin.
Commercial revenue of HP decreased 3 percent and consumer revenue declined 22 percent.
Shipments of HP’s personal systems declined 8 percent with desktops units down 9 percent and notebooks units down 14 percent.
HP’s printing revenue declined 4 percent year over year with a 15.6 percent operating margin. Total hardware units were up 5 percent with commercial hardware units up 12 percent and consumer hardware units up 2 percent. Supplies revenue was down 4 percent.
Enterprise group revenue declined 9 percent year over year with a 15.2 percent operating margin.
HP’s networking revenue was flat, industry standard servers revenue was down 11 percent, business critical systems revenue was down 26 percent, storage revenue was down 10 percent and technology services revenue was down 7 percent.
Enterprise services revenue declined 9 percent year over year with a 3.3 percent operating margin.
Application and business services revenue dipped 11 percent and infrastructure technology outsourcing revenue declined 7 percent.
HP’s software revenue increased 1 percent with a 20.5 percent operating margin.
Meanwhile, Bill Veghte, HP’s chief operating officer (COO), will become executive vice president and general manager of the HP Enterprise Group.
He will be responsible for the coordinated development of the company’s portfolio of cloud solutions.
Dave Donatelli will take on a new role focused on identifying early-stage technologies as he did with 3PAR and 3Com.
HP will combine its marketing and communications organizations under the chief communications officer Henry Gomez.
All of the changes are effective immediately.
Veghte will retain his current responsibility for the pan-HP cloud initiative. Since the HP Enterprise Group provides the foundational infrastructure for all of HP’s cloud offerings, the alignment of these two portfolios under a single leader will improve time to market for HP’s Converged Cloud solutions.