twice connect
careers

Dell Up, HP Down In Earnings Reports

2/28/2012 05:54:00 PM Eastern
NEW YORK– Hewlett-Packard’s fiscal first-quarter revenue and earnings were down significantly, while Dell posted double-digit 2012 yearly increases in revenue and net income.

For the quarter, ended Jan. 31, HPposted GAAP net revenue of $30 billion, down 7 percent from the $32.1 billion posted during the same period in 2011. GAAP net earnings dropped 44 percent to $1.5 billion from $2.6 billion the prior year.

HP’s personal systems group, which the company contemplated spinning off last year, saw revenue decline 15 percent year over year. Total unit sales were down 18 percent, with desktop falling 19 percent and notebooks 18 percent.

The imaging and printing group saw revenue drop 7 percent, with consumer hardware sales falling 15 percent.

New CEO Meg Whitman tried to paint a rosy picture.

“In the first quarter, we delivered on our first quarter outlook and remained focused on the fundamentals to drive long-term sustainable returns. We are taking the necessary steps to improve execution, increase effectiveness and capitalize on emerging opportunities to reassert HP’s technology leadership.”

Dell’s increases were made on the back of the company’s enterprise business as its consumer sales and revenue declined during both periods. Dell generated $62 billion in revenue and $3.5 in net income for the year, ended Jan. 28. These figures were up 1 percent and 33 percent, respectively, compared with 2011.

For the fourth quarter Dell had $16 billion in revenue, up 2 percent, and $764 in net income, down 18 percent.

The company said consumer revenue totaled $3.2 billion for the quarter, down 2 percent, and operating income was $39 million, down 43 percent from the fourth quarter in 2011. Most of the losses were incurred in the United States, as non-domestic sales grew 10 percent during the quarter.
Want to read more stories like this?
Get our Free Newsletter Here!

Curated By Logo