HP revenue down 8% for third quarter

But Enterprise Group posts growth of 2% ahead of November 1 split

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HP revenue down 8% for third quarter Whitman: HP delivered results in the third quarter that reflect very strong performance in our Enterprise Group
By  Tom Paye Published  August 23, 2015

HP's revenue for its 2015 third quarter was down 8% year-on-year, or 2% when measured on a constant currency basis, the company announced last week.

Personal Systems revenue was down 13% year-over-year with a 3% operating margin. Commercial revenue decreased 9% and consumer revenue decreased 22%. Total units were down 11% with notebooks down 3% and desktops down 20%.

However, things looked a little rosier for the enterprise side of the business, which will become its own entity in November, under the name Hewlett-Packard Enterprise. The personal systems and printers business will trader under HP Inc.

Enterprise Group revenue was up 2% year over year with a 13% operating margin. Industry standard servers revenue was up 8%, and networking revenue was up 22%. That said, storage revenue was down 2%, business-critical systems revenue was down 21%, and technology services revenue was down 9%.

What's more, enterprise services revenue was down 11% year over year with a 6.0% operating margin. Infrastructure technology outsourcing revenue was down 13%, and application and business services revenue declined 7%.

Despite this, CEO Meg Whitman said that the company was on track to deliver strong growth in the Enterprise segment. Whitman will be CEO of Hewlett-Packard Enterprise when the company splits.

"HP delivered results in the third quarter that reflect very strong performance in our Enterprise Group (ETOLF) and substantial progress in turning around Enterprise Services," she said.

"I am very pleased that we have continued to deliver the results we said we would, while remaining on track to execute one of the largest and most complex separations ever undertaken."

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