HP's woes continue, Q4 profit plunges 91 percent

New York: Technology giant HP has reported a whopping 90.58 percent plunge in its profit to $239 million for the fourth fiscal quarter, ended 31 October, 2011, and has issued a cautious outlook for the current fiscal.

In the year-ago qaurter, the company had a net income of $2.53 billion, HP said in a statement last night.

The company’s net revenues declined by 3 percent from the year-ago period to $32.1 billion in the quarter.

For the full fiscal year, which ended last month, HP posted a net revenue of $127.2 billion, up one percent from the previous year.

Its net income dipped to $7.07 billion in FY 2010-11, from $8.71 billion during the previous year.

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The technology giant also issued a cautious outlook for the new financial year, saying “We are remaining cautious heading into FY12 but are focused on delivering our earnings outlook and driving shareholder value.”

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The company’s executive vice president and chief financial officer Cathie Lesjak said, “We need to get back to the business fundamentals in fiscal 2012, including making prudent investments in the business and driving more consistent execution.”

During the fourth quarter, HP’s services business grew 2 per cent to $9.3 billion from a year earlier. However, revenue in the company’s server group tumbled by 4 percent to $5.7 billion and its printer business fell 10 percent to $6.3 billion.

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In terms of geographic regions, emerging countries performed well. BRIC countries such as Brazil, Russia, India and China have collectively registered a revenue of $3.8 billion, up 9 per cent over the year-ago period. In addition, Asia Pacific region generated a revenue of $6 billion, representing a 3 percent increase year over year.

However, revenues from Europe, Middle East and Africa decelerated by 6 percent to $11.7 billion and Americas witnessed a decline of 4 percent to $ 14.5 billion.

For the first quarter of fiscal 2012, HP expects an earning per share in the range of $0.61-0.64 and projects an earning per share of about $ 3.20 for the full fiscal year.

PTI