updated 06:05 pm EST, Wed February 18, 2009
HP quarterly financials
Amid the economic woes, HP's fiscal Q109 financial results indicate declining revenue in the majority of its corporate divisions. The company saw a drop in revenue of 25 percent for desktop PCs, while notebook revenue was down 13 percent. Sales of printers, enterprise products and software followed a similar path. Overall net revenue showed a modest increase of 1 percent over last year, although net earnings dropped by 13 percent.
HP has joined the group of companies reporting dismal performance for the quarter, although the economic recession has not affected every computer company in the same way. Apple reported its best-yet quarter, with a nine percent unit growth for Macs and revenues topping $10 billion for the first time, while sustaining a gross margin above 34 percent.
A Gartner report claimed that PC shipment growth was the worst ever for the PC industry during the last quarter of 2008. The analysis suggested unit growth of just 1.1 percent from the fourth quarter of 2007, while falling average selling prices contributed to significant revenue cuts for many manufacturers.
HP's guidance suggests a potential two- to five-percent revenue decline for the full year, expecting the poor market conditions to persist.