HP reports first sales increase in 11 quarters

21 Aug 2014

Computer maker HP’s third-quarter net revenue inched up 1pc from US$27.2bn in the year-ago period to US$27.6bn, marking the first increase in sales after 11 quarters of decline.

The company also reported net earnings per share of US$0.89 for the quarter, a 3pc increase from US$0.86 in the year-ago quarter.

Third-quarter cash flow from operations amounted to US$3.6bn, which is an increase of 36pc from US$2.7bn in the prior-year period.

Meg Whitman, chairman, president and CEO of HP, said she’s very pleased with the progress the company has made.

“When I look at the way the business is performing, the pipeline of innovation and the daily feedback that I receive from our customers and partners, my confidence in the turnaround grows stronger,” she said.

HP’s CFO Cathie Lesjak wrote in a blog post that strong revenue growth in Personal Systems, Networking, and Industry Standard Servers, drove third-quarter performance. 

“For the first time in three years, the company delivered top line revenue growth on a year-over-year basis,” she wrote. 

“While turnarounds are not linear and we face some tough comparisons in the fourth quarter, I continue to be very encouraged by the progress we’re making.”

Third-quarter revenue in Personal Systems increased by 12pc to US$8.6bn year-over-year, while revenue for the quarter rose by 4pc to US$672m in Networking, and by 9pc to US$3.0m in Industry Standard Servers.

Year-over-year third-quarter revenue fell, however, in Printing (by 4pc to US$5.6bn), Enterprise Services (by 6pc to US$5.6bn), Software (by 5pc to US$959m) and HP Financial Services (by 3pc to US$79m).

HP building image via Shutterstock

Tina Costanza was a journalist and sub-editor at Silicon Republic