today reported the financial results for its third fiscal quarter, which ended on July 31, 2001. The company reported a 14 percent drop in revenue compared to the same quarter last year, and significantly reduced earnings per share.
HP said that third quarter revenue was about US$10.1 billion, off $1.7 billion year-over-year for the same quarter. Pro forma earnings per share (EPS) was 11 cents, compared with 50 cents in the prior-year period.
HP chairman and CEO Carly Fiorina said that her company is managing through a global economic downturn, and the financial numbers show that.
“However, we are seeing positive signs that our efforts to transform our business and improve our execution are gaining traction, and we continue to make strategic moves to fuel growth,” said Fiorina.
HP is controlling short-term expenses and making efforts to manage inventory down, as well, according to Fiorina. She also claimed that HP is remolding itself to improve its response to rapidly changing market condition.
Although it continues to be profitable, HP’s consumer business took a 21 percent revenue hit year-over-year for this quarter. The company retains a number 1 worldwide home PC position, however, and had particularly strong growth in Europe — a 67 percent increase in revenue compared to last year.
HP’s business sector dropped as well, about 11 percent year over year and 8 percent sequentially. The company is optimistic that its high-end UNIX “Superdome” systems will continue to sell well, however, and HP says that its consulting, outsourcing and support arms grew at a pace better than HP’s competitors.
HP announced in late July a workforce reduction program that it says will cut about $500 million from the company’s budget, and take 6,000 jobs in the process. HP Said that the majority of those workers should be out by the end of October.