PC VENDOR HP has posted worse than expected financial results for its fiscal 2013 third quarter, with both revenue and profits flagging compared to the firm's results in the same quarter last year.
Owing to a dwindling PC market, the US computer firm reported that net profit fell by 15 percent to $1.7bn year over year and revenue declined by eight percent to $27.2bn.
The numbers for HP's various hardware divisions were especially telling, with revenues for personal computing down 11 percent, printing down four percent and enterprise down nine percent.
Not only did HP post negative earnings growth but the firm also announced changes in its senior management team, including the replacement of enterprise general manager Dave Donatelli.
To turnaround the enterprise division, HP CEO Meg Whitman appointed the firm's COO Bill Veghte as its new enterprise chief and promoted him to EVP.
The firm hopes the changes will help it grow profits in a difficult market. Whitman said they will allow HP to become more responsive to a changing industry. "Bill's vision for the future of IT, his breadth of experience in the industry and at HP, and his deep enterprise experience, make him the ideal candidate to help HP navigate a rapidly changing market," she said.
"Dave succeeded in pioneering converged infrastructure, bridging servers, storage and networking. Looking forward, the software-defined data centre and cloud computing offers us a great opportunity to extend HP's leadership in the technology infrastructure space."
Donatelli, whom Veghte is replacing, has now been moved to a post which will see him identifying startups creating new technologies to help with server, storage and networking solutions.
HP's reported figures show that it has become yet another PC vendor to fall victim to the recent decline in computer sales.
According to analyst outfit Gartner, the PC market in general showed a 19.8 percent drop in shipments over the last year in Western Europe and a 13 percent decline in the UK.
Gartner reported that both Taiwanese PC floggers Acer and Asus produced rather appalling PC sales figures for Western Europe in the second quarter, with both firms seeing over 40 percent declines in shipments since 2012.
HP and Dell also saw declines in PC shipments across both European and British markets, Gartner said, with the firms seeing declines in shipments of 17.4 percent and 1.1 percent, respectively, in Europe, and declines of 6.9 percent and 1.2 percent, respectively, in the UK.
However, despite the general plunge in sales, Chinese computer firm Lenovo was the only PC maker that managed to boost sales from the second quarter last year to the same quarter this year, with an increase in sales of 18.9 percent in Western Europe and 28.6 percent in the UK. µ
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