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HP revenue growth unlikely in 2014, says CEO Meg Whitman

HP reports revenues of $27.2bn for the quarter ending 31 July 2013, down 8% compared with the same period the year before

Hewlett-Packard has reported revenues of $27.2bn for the quarter ending 31 July, down 8% compared with the same period a year ago.

"We once again achieved the financial performance we said we would, delivering $0.86 in non-GAAP diluted earnings per share, within our previously provided outlook of $0.84 to $0.87," said Meg Whitman, HP president and CEO.

"I remain confident that we are making progress in our turnaround. We are already seeing significant improvement in our operations, we are successfully rebuilding our balance sheet, our cost structure is more closely aligned with our revenue and we have re-ignited innovation at HP, with a focus on the customer.”

However, Meg Whitman – who had previously said it was possible the company would see growth in 2014 - warned that HP is unlikely to see a revenue growth next year, which sent shares down nearly 6% in after-hours trading, according to the BBC.

Whitman said weak performance by the company’s enterprise group was amplified by existing market challenges.

The enterprise group as a whole fell 9%, with an 11% cut in application and business services revenue.

HP has been hit by falling global PC sales and rising competition from rivals such as Lenovo, which displaced HP as the world's top PC maker last year.

Worldwide PC shipments have now fallen for five quarters in a row, according to research firm Gartner.

HP’s personal systems group dropped 11% year-on-year, while the biggest drop was to consumer sales, falling 22%

HP reported a net profit of $1.4bn for the quarter, reversing a loss of $8.9bn during the same period last year due to a write-down of some assets, mainly related to its acquisition of EDS in 2008.

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