HP reports $8.9B Q3 loss on writedowns, weak sales, lowers full-year forecast

22.08.2012

Personal Systems Group revenue in the quarter fell 10 percent to $8.6 billion, with a 12 percent drop in consumer spending and a 9 percent fall in commercial purchases. Within the segment, desktop units fell 6 percent and notebook units dropped 12 percent.

Imaging and Printing Group sales were down 3 percent. While commercial sales rose 4 percent, consumer purchases dropped 13 percent, according to HP.

Services revenue fell 3 percent.

Enterprise servers, networking and storage sales dropped 4 percent, with the biggest hit taken by Business Critical Systems, where revenue fell 16 percent. Networking sales rose 6 percent.

Software sales rose 18 percent, driven in part by last year's acquisition of Autonomy. However, new license growth, a key indicator of health in a software business and the mood of customers for starting new projects, rose only 2 percent. Software-related support revenue was up 16 percent and software services rose 65 percent.