HP posts disappointing results, to cut jobs

PALO ALTO. USA: HP announced financial results for its fiscal 2014 second quarter ended April 30, 2014.

Meg Whitman, president and chief executive officer, HP, said: "With the first half of our fiscal year completed, I'm pleased to report that HP's turnaround remains on track. With each passing quarter, HP is improving its systems, structures and core go-to-market capabilities. We're gradually shaping HP into a more nimble, lower-cost, more customer- and partner-centric company that can successfully compete across a rapidly changing IT landscape."

In May 2012, HP adopted a multi-year restructuring plan designed to simplify business processes, accelerate innovation, lower costs and deliver better results. HP previously estimated that 34,000 positions would be eliminated in connection with the plan. As HP continues to reengineer the workforce to be competitive and meet its objectives, the previously estimated number of eliminated positions will increase by between 11,000 to 16,000, according to the company report.

Fiscal 2014 second quarter segment results

• Personal Systems revenue was up 7 per cent year over year with a 3.5 per cent operating margin. Commercial revenue increased 12 per cent and consumer revenue declined 2 per cent. Total units were up 10 per cent with Desktops units up 6 per cent and Notebooks units up 6 per cent.

• Printing revenue was down 4 per cent year over year with a 19.5 per cent operating margin. Total hardware units were up 1 per cent with Commercial hardware units up 3 per cent and Consumer hardware units flat. supplies revenue was down 6 per cent.

• Enterprise Group revenue was down 2 per cent year over year with a 14.4 per cent operating margin. Industry Standard Servers revenue was up 1 per cent, storage revenue was down 6 per cent, business critical systems revenue was down 14 per cent , networking revenue was up 6 per cent and technology services revenue was down 5 per cent.

• Enterprise services revenue was down 7 per cent year over year with a 2.5 per cent operating margin. Application and business services revenue was down 8 per cent, and Infrastructure Technology Outsourcing revenue declined 7 per cent.

• Software revenue was flat year over year with a 19.2 per cent operating margin. License revenue was up 8 per cent , support revenue was down 4 per cent, professional services revenue was up 1 per cent and software-as-a-service (SaaS) revenue was up 6 per cent.

• HP financial services revenue was down 2 per cent year over year with a 2 per cent decrease in net portfolio assets and a 12 per cent increase in financing volume. The business delivered an operating margin of 11.4 per cent.