Hewlett Packard (HP)’s financial results for its fourth quarter and full fiscal year have shown a five percent drop in revenue.
The ICT giant’s fiscal year ended October 31 2012 and reported a net revenue of $102.4 billion. It was four percent down when adjusted for currency effects.
Meg Whitman, HP President and Chief Executive, said: “As we discussed during our Securities Analyst Meeting last month, fiscal 2012 was the first year in a multiyear journey to turn HP around.
“We’re starting to see progress in key areas, such as new product releases and customer wins. We’re particularly pleased that in Q4, we were able to improve our balance sheet, generating $4.1 billion in operating cash flow, and we returned $384 million to shareholders in the form of share repurchases and dividends.”
Not only was revenue down but earnings too, and according to the company this is related to the impairment of goodwill and purchased intangible assets, restructuring charges, amortization of purchased intangible assets, charges relating to the wind down of non-strategic businesses and
For the fourth quarter, net revenue of $30 billion was down seven percent year over year and
down four percent when adjusted for the effects of currency.
Fourth Fiscal Quarter 2012 Business Group Results
- Personal Systems revenue was down 14 percent year over year with a 3.5 percent operating margin. Commercial revenue decreased 13 percent, and Consumer revenue declined 16 percent. Total units were down 12 percent with both Desktops and Notebooks units down 12 percent.
- Printing revenue declined five percent year over year with a 17.5 percent operating margin. Total hardware units were down 20 percent year over year. Commercial hardware units were down 15 percent year over year, and Consumer hardware units were down 22 percent year over year.
- Services revenue declined six percent year over year with a 14.2 percent operating margin. Technology Services revenue was down four percent year over year, Application and Business Services revenue was down seven percent year over year, and IT Outsourcing revenue declined 6 percent year over year.
- Enterprise Servers, Storage and Networking (ESSN) revenue declined nine percent year over year with an 8.3 percent operating margin. Networking revenue was up seven percent, Industry Standard Servers revenue was down seven percent, Business Critical Systems revenue was down 25 percent, and Storage revenue was down 13 percent year over year.
- Software revenue grew 14 percent year over year with a 27.2 percent operating margin, including the results of Autonomy. Software revenue was driven by nine percent license growth, nine percent support growth, and 48 percent growth in services.
- HP Financial Services revenue grew one percent year over year as a three percent increase in net portfolio assets was offset by an 11 percent decrease in financing volume. The business delivered a 10.8 percent operating margin.