MAKER OF EXPENSIVE PRINTER INK HP reported a 16 percent drop in first quarter fiscal 2013 profits to $1.2bn despite its desktop PC business picking up.
HP has been mired in controversy for the past few years over former CEOs and multi-billion dollar purchases of EDS and Autonomy, and with it the firm's bottom line has been hit. The firm on Thursday revealed that first quarter revenues fell by six percent from the same period last year to $28.4bn, while profits fell by 16 percent to $1.2bn.
Aside from HP's financial services department, which for the most part acts like a bank and posted a one percent revenue increase, the firm announced that revenue fell across the board, with its PC, printer, enterprise group, enterprise services and software business revenues declining by eight percent, five percent, four percent, seven percent and two percent respectively.
One ray of light for HP was that its desktop PC sales increased by 10 percent, however its laptop sales fell by 14 percent.
Meg Whitman, HP president and CEO said, "While there's still a lot of work to do to generate the kind of growth we want to see, our turnaround is starting to gain traction as a result of the actions we took in 2012 to lay the foundation for HP's future."
Whitman said she "felt good" about the rest of the fiscal year and predicted that the firm's earnings per share will be in line with the firm's previous forecasts.
"We'll be bringing a number of new programs and disruptive innovations to market in the coming quarters, and we expect the benefits from our restructuring will accelerate through fiscal 2013," claimed Whitman.
While HP's results in the previous two quarters had been headlined with multi-billion dollar writedowns, this report surpassed earnings per share forecasts, which should please investors. However Whitman really does need to deliver those disruptive technologies sooner rather than later, as the company cannot afford to do what it did with 2013 and write off 2014. µ