HP shareholders win out as revenue declines by $8bn

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HP shareholders win out as revenue declines by $8bn

Cliff Saran

HP shareholders are set to receive an early Christmas present in spite of the company making $8bn less in 2013 compared to 2012.

The supplier said it returned $763m to shareholders in the form of dividends and share repurchases in the fourth quarter.

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For the company’s fiscal 2013 results, which ended on 31 October, HP made $112bn revenue compared to $120bn in 2012.

HP president and chief executive officer Meg Whitman (pictured) said: "Our Q4 results demonstrate that HP's turnaround remains on track heading into fiscal 2014. While we still have much more work to do, our business units and their core assets are delivering on HP's strategy to help customers thrive by providing solutions for the new style of IT."

In its personal systems division, HP reported commercial revenue increased 4% and consumer revenue declined 10%.

HP’s notebook sales again suffered, reflecting the global shift away from PCs to tablets.  The company posted $16bn in notebook  revenue, nearly $3bn less than in 2012. Desktop PC revenue was $12.8bn, $1bn less than in 2012.

Workstation sales remained more-or-less the same, while  HP’s networking business grew slightly to $2.53bn in 2013.

Its x86 server business posted revenue of $12.1bn, $482m less  than in 2012, while  its business critical systems division made $1.2bn in net revenue, $422m less than in 2012.

HP’s enterprise services business posted revenue of $23.5bn compared to $25.6bn last year. Its enterprise services revenue declined 9% year over year with a 4.4% operating margin. Application and business services revenue was down 10%, and infrastructure technology outsourcing revenue declined 9%.

Software revenue was down 9% year over year, although software-as-a-service (SaaS) revenue increased by 15%.


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