updated 06:00 pm EDT, Tue May 19, 2009
HP computer revenues down
Amid ongoing economic troubles, HP's fiscal Q209 financial disclosures indicate the company has not yet recovered from continuing revenue declines. Despite maintaining a flat number of computer shipments, desktop revenue fell by 24 percent and notebook revenue slid by 13 percent. The software, imaging, printing and enterprise divisions also showed lackluster performance, contributing to net earnings 17-percent below last year's quarter.
During Q109, HP's computer revenues declined at nearly the same rates as the recent quarter. The trend could be associated with lower ASPs or increased operating costs.
TBR analyst Ezra Gottheil earlier this year described a "permanent and structural" collapse of overall PC selling prices. While global unit shipments only dropped by five percent in the last quarter of 2008, ASPs fell by 13 percent and revenues dropped by 18 percent.
A number of companies have shown contrasting performance through the recession. Apple reported its best non-holiday quarter ever, with overall revenue up nine percent. The company has maintained fairly level ASPs compared to its competitors, helping protect revenues even when Mac shipments are down.
HP expects its fiscal 3Q09 performance to be relatively flat, with the potential for revenues to drop by two percent.