HP reports drop in quarterly revenue


hp_ceo.jpgHewlett Packard (HP) has reported revenue of US$27,4 billion (about ZAR246.6 billion) for the first quarter of 2009, down 3% from the corresponding period last year.

It also reported a drop in the number of its devices sold to consumers. The world’s leading computer hardware manufacturer remained pessimistic about the outlook for the rest of 2009.

HP said in a statement: “HP estimates full-year 2009 revenue will decline approximately 4 to 5 percent from the prior-year period. HP expects third quarter FY09 revenue to be approximately flat to down 2% sequentially.”

During the first quarter of this year, HP revenue grew 9 percent in the Americas to U$12.1 billion (about ZAR108.9 billion) but declined 11 percent in Europe, the Middle East and Africa and 10 percent in Asia Pacific to $10.6 billion (about ZAR95.4 billion) and $4.7 billion (about ZAR42.3 billion), respectively.

Revenue from outside of the United States in the second quarter accounted for 64 percent of total revenue, with revenue in the BRIC countries (Brazil, Russia, India and China) declining 12 percent over the prior-year period while accounting for 9 percent of total HP revenue.

Meanwhile, HP said although it attained the leading market position in computers, revenue declined 19 percent to $8.2 billion (about ZAR73.9 billion).
Notebook revenue revenue for the quarter was down 13 percent while desktop venue declined 24 percent.

The Imaging and Printing Group (IPG) revenue declined 23 percent to $5.9 billion (about ZAR53.1 billion) while supplies revenue was down 14 percent due in part to channel inventory realignment, HP said.

— Savious Kwinika

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