HP's fourth quarter revenues down by 18% on last year
Although HP’s figures are going to beat analyst expectations, the vendor’s Q4 revenue is going to reach $10.9 billion.
Hewlett-Packard is reporting that its fourth quarter revenues are going to be down sharply year-over-year.
Although HP’s figures are going to beat analyst expectations, the vendor’s Q4 revenue is going to reach $10.9 billion — an 18% reduction on last year’s revenues.
HP’s net earnings of $97 million are down 89% down year-over-year.
“Market conditions continue to be difficult and the company is not counting on an economic recovery in 2002,” the company said in a written statement.
Revenue from computing systems declined 31% year-over-year. Unix server revenues plummeted 30%, but the business unit remained profitable. Enterprise storage numbers dropped 22% and software revenues fell 12% overall. PC server revenues went into freefall, dropping 44%. Commercial desktops declined 39% and notebooks fell 12%.
HP’s IT services businesses provided the only bright spot for the computing giant, with revenue growing 5% year-over-year. Support revenue grew by 9%, the outsourcing business grew by 22% and consulting services grew by 2%.
According to HP’s Middle East marketing manager, Graham Porter, the local operation has avoided the doom and gloom of the international situation. The 6000 headcount cut that was announced earlier this year hasn’t impacted the local operation. In some areas of its business HP is even recruiting.
Also adds Porter, the Middle East has been “the top performing region,” in HP’s ISE emerging markets group.
“Things are good — we have made our numbers and made double digit growth in all areas of the business,” says Porter.
“It is a strange time for us, when it has been very successful for us, yet the world around us has been doom & gloom,” he adds.