HP’s second-quarter revenue, profit reflects decrease in PC sales

23 May 2013

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A slump in sales of personal computers has been reflected in a decrease in second-quarter revenue and profit for HP. The computer maker posted revenue of US$27.6bn, compared with US$30.7bn a year earlier, and net income of US$1.08bn, compared to US$1.59bn last year.

Second quarter non-GAAP diluted earnings per share totalled US$0.87, down 11pc from the prior year. GAAP diluted earnings per share amounted to US$0.55, down 31pc from the prior year.

HP reported decreases in its segments, as well.

Personal systems revenue dropped 20pc year-over-year, with a 3.2pc operating margin. Commercial revenue slumped 14pc, and consumer revenue declined 29pc. Total units fell 21pc, with desktop units down 18pc and notebook units down 24pc.

Printing revenue declined 1pc year-over-year with an operating margin of 15.8pc.

Total hardware units sank 11pc year-over-year. Commercial hardware units decreased 5pc year over year, and consumer hardware units were down 13pc year over year.

Meg Whitman, HP president and chief executive officer, said she is encouraged by the company’s performance in the second quarter.

“I feel good about the rest of the year,” Whitman said. “As I have said many times before, this is a multi-year journey. We have a long way to go, but we are on track to deliver on our fiscal 2013 non-GAAP diluted earnings per share outlook.”

For the full-year fiscal 2013, HP estimates non-GAAP diluted EPS to be in the range of US$3.50 to US$3.60 and GAAP diluted EPS to be in the range of US$2.50 to US$2.60.

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Tina held senior editorial positions at daily newspapers in Ottawa and Toronto

editorial@siliconrepublic.com