HP loses $8.9B for the quarter on EDS write-down

HP logoHP, the world's largest traditional PC maker, reported its second quarter financials today, revealing that the computer manufacturer suffered a loss to the tune of $8.9 billion last quarter. The computer maker's massive loss derived largely from a massive write-down stemming from the purchase of Electronic Data Systems. Despite the quarterly loss, observers believe the company is showing progress in its ongoing effort to transition to an enterprise services focus.

HP's net revenue for the quarter fell five percent to $29.7 billion, slightly below the average investor estimate. The company saw revenues from all of its main business units fall within the quarter, with personal computing revenues dropping 10 percent to $8.6 billion. The Services division dropped three percent to $8.8 billion, though that division is now the company's largest sales generator as of last quarter.

The EDS write-down was expected, as the company revealed earlier this month that it would be taking an $8 billion noncash charge for the acquisition of EDS in 2008. HP bought the firm with the aim of recentering its focus on enterprise services, a more lucrative area than the consumer PC market, which has seen both prices and revenues falling for several years now. HP purchased EDS for $13.9 billion; its write-down for the acquisition was pegged at $10.8 billion. Excluding the write-down, the company earned $1 per share last quarter.

As a part of its reorientation, HP has been reducing its workforce, cutting 4,000 jobs in the fiscal third quarter with a goal of 11,500 by the end of fiscal 2012. Executives, including CEO Meg Whitman, are urging patience as the company cuts costs and moves to right itself.

The focus on enterprise services is of late a common theme among large PC manufacturers, who dominated the past two or three decades of computing only to prove unable to adjust to the recent shift toward mobile devices. Dell yesterday announced disappointing sales in its consumer PC division, and that company too is transitioning toward enterprise services. Consumers are increasingly choosing smartphones and tablets over traditional PC form factors, making Apple the de facto number one computing device manufacturer, while the PC giants struggle to adjust to either adjust to consumer demand or to cede the sector to smaller players.

HP, for its part, is still interested in the consumer tablet sector. While the company has apparently shelved plans for an ARM-based Windows RT tablet, its Windows 8 tablet is still expected to launch this fall.

Source: Electronista

Tags: HP, report

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
Sales of new models way below those of 2017 generation
 
The new Windows 10 browser will run on the Chromium engine
 
Google will shut the service down in April of 2019 instead of August as initially planned
 
The regular S10 will sport a 6.1-inch panel with the same front-facing camera design
 
The smartphone has a 6.4-inch Full HD+ (2340 x 1080 pixel) Infinity-O display
 
Google Play Services will deprecate the aging OS in newer releases
 
Apple might be looking to trial the feature on the iPad before iPhone
 
Toshiba, which released the world’s first 14TB nearline 3.5-inch and 26.1mm-height HDDs with 9-disk
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
      1
2345678
9101112131415
16171819202122
23242526272829
3031     




Poll

Do you use microSD card with your phone?
or leave your own version in comments (11)