The company posted third quarter net revenue of $25.3 billion. “We faced a challenging macroeconomic and IT spending environment in the third quarter, with soft consumer spending, continued weakness in Russia and China, and stock market volatility driving uncertainty. Currency continued to significantly impact our reported revenue,” said Meg Whitman, chairman, president and chief executive officer, HP.
HP’s personal products business contributed mainly to the drop in Q3 revenue. In addition, HP faced challenges in Russia and China.
Personal Systems revenue fell 13 percent to $7,491 million. Commercial revenue decreased 9 percent and Consumer revenue dropped 22 percent. HP shipments of personal products fell 11 percent. The dip in HP Notebooks unit shipments was 3 percent, while HP Desktops units fell 20 percent.
HP printing revenue decreased 9 percent to $5,108 million. HP said shipments of hardware units fell 2 percent. Commercial hardware units dropped 6 percent and Consumer hardware units flat.
Enterprise Group revenue rose 2 percent to $7,007 million. Industry Standard Servers revenue grew 8 percent. HP Storage revenue fell 2 percent. HP Business Critical Systems revenue decreased 21 percent. HP said Networking revenue increased 22 percent and Technology Services revenue was down 9 percent.
In the Enterprise Group, Industry Standard Servers revenue grew 8 percent. Business Critical Systems revenue declined 21 percent. Storage revenue fell 2 percent. HP Converged Storage makes up more than 50 percent of the storage portfolio. 3PAR plus XP plus EVA grew 13 percent.
Technology Services declined 9 percent. HP is seeing continued adoption of new portfolio, including Datacenter Care and Proactive Care, and expects TS to continue to stabilize with improving hardware sales.
HP said that its Enterprise Services revenue dipped 11 percent to $4,976 million. HP said its Infrastructure Technology Outsourcing revenue dropped 13 percent, and Application and Business Services revenue declined 7 percent.
Software revenue of HP fell 6 percent to $900 million. License revenue was down 11 percent, support revenue fell 3 percent, professional services revenue dropped 8 percent and software-as-a-service (SaaS) revenue was down 4 percent.
HP Financial Services revenue was down 6 percent to $806 million.