HP regains lost ground: Q3 revenue up 1% to $27.6 bn, net income dips 29%

HP today said its third quarter revenue in fiscal 2014 rose 1 percent to $27.6 billion, while net income dipped 29 percent to $1 billion.

The enterprise IT vendor said the third quarter of fiscal 2014 marks an important milestone in HP’s turnaround.  For the first time in three years, the company delivered top line revenue growth on a year-over-year basis.

Growth drivers were Personal Systems and Industry Standard Servers and Networking.

HP CEO Meg Whitman said: “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.”

HP said Performance in Printing, Enterprise Services and Software was mixed with good profitability but weaker top line results.

Personal Systems revenue grew 12 percent to $8.6 billion.

Printing revenue fell 4 percent to $5.6 billion.

Meg Whitman, president and chief executive officer, HP

Enterprise Group revenue grew 2 percent to $6.9 billion, with growth in Industry Standard Servers and Networking partially offset by declines in Storage (traditional Storage declined partially offset by higher converged storage), Technology Services and Business Critical Systems.

Enterprise Services revenue dipped 6 percent to $5.6 billion, driven by continued key account run-off as well as incremental weakness in EMEA.

Software revenue declined 5 percent. HP said it is working to simplify portfolio of offerings, streamline its go-to-market and accelerate web selling capability.

HP will be introducing innovative products and services in personal systems, servers, cloud and printing in coming months.

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