Hewlett-Packard Company (NYSE:HPQ) announced its fourth quarter and fiscal 2014 financial results with revenue drop in every single sector including its enterprise hardware and services demand. The computer hardware and printer manufacturer reported less than expected revenue for the quarter. HP is likely to separate its enterprise division from its printing and traditional computer divisions next year.
The computer manufacturer reported net revenues of $111.5 billion for fiscal 2014 with 1% drop when compared with the prior year period. Similarly, the fourth quarter revenue fell by 2% from the year ago quarter to $28.4 billion. The GAAP diluted net earnings dropped 4% on year-over-year period to 70 cents per share as compared to 73 cents in the year ago period. While discussing the dropping revenue and profit margins, Meg Whitman, CEO of Hewlett-Packard Company (NYSE:HPQ), said, “I’ve always said that turnarounds aren’t linear. We’re right where we thought we’d be.”
At the time of announcing the financial results, Whitman said,
“I’m excited to say that HP’s turnaround continues on track. In FY14, we stabilized our revenue trajectory, strengthened our operations, showed strong financial discipline, and once again made innovation the cornerstone of our company. Our product roadmaps are the best they’ve been in years and our partners and customers believe in us.”
Further Whitman said that enterprise growth would be much better next year. During the fourth quarter, personal computer unit of Hewlett-Packard Company (NYSE:HPQ) grew 4% whereas enterprise group and services revenue dropped by 4% and 7% respectively.
Last month, Hewlett-Packard Company (NYSE:HPQ) announced the separation of its enterprise business from its traditional personal computer and printer business. While discussing the partition, Whitman said, “This separation was totally the right thing to do for this company.” The proposed partition is likely to cause up to 5,000 job cuts and it would result into two separately listed companies dividing its faster growing corporate hardware and services business from its traditional printer and traditional computer segment.
This article has been written by Prakash Pandey.