HP reported $1.6 billion or 67 cents per share as net income for the third quarter ended July 31, a decline from $2 billion or 80 cents a share in the same quarter a year ago.
The revenues for the firm fell to $27.5 billion, from $28 billion for the same period in the previous fiscal year.
The world's No. 1 personal computer maker cautioned that despite stabilizing business conditions, pricing battles are likely to erode revenues further.
Addressing the analysts during the conference call, Hewlett-Packard Chief Executive Officer Mark Hurd stated, "We're encouraged by the stability we're beginning to see in the market but not yet ready to call it a turn."
The sectoral analysis
The services business has been the only bright spot that has helped the company sustain results, thanks to HP’s acquisition of services giant EDS last year.
Revenue from HP's services unit has almost doubled to $8.5 billion, thus contributing about a third of the firm’s profit in this quarter.
Leaving aside the services division, all units have witnessed a tumble. With the consumers shifting to low cost netbooks, particularly in Europe, sales in the PC division slipped 18 percent to $8.4 billion, from a year ago.
H.P.’s sales of printers and related supplies like ink have also declined, signifying that in the on-going recession companies are using less paper and opting for cheaper and generic inks as alternatives.
The company’s printing and imaging unit reported 20 percent fall in revenue, to $5.7 billion, as sales of supplies retreated 13 percent and sales of printers dropped 23 percent.
HP trying to create new printing businesses
The company’s printing unit has long been among the units churning maximum revenue, proving far higher profits than earned by PCs or any other type of computer hard ware.
In order to revive the sagging printing business, HP is trying to carve out new business opportunities. The company is looking for ways to make content on Twitter and other social networking sites pages printable.
Further HP has been promoting the idea to retailers to try in-store digital presses to make placards concerning discounts or new arrivals, stating that these digital presses are more flexible compared to traditional analog presses.
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