Without EDS, H-P financial quaterly results would have been dismal
[Update] H-P said it will trim 2 percent of its 321,000 employees this year or 6,400 jobs, in addition to the already announced cuts associated with the EDS acquisition. Most the firing will happen outside the U.S. confirmed the Palo Alto, Calif.-company.
The recession is hitting H-P right at its core.
The Palo Alto, Calif.-company saw a revenue and profit decline in all of its businesses – aside of the Services division (more on that later) – including, PCs, servers, printers, software and financial services.
Even H-P’s golden egg, its Imaging and Printing Group (IPG), recorded a double digit decline in revenue (-23%), to $5.9 billion, from the same period a year ago.
On the other hand, H-P’s Services division recorded a whopping 99% increase in revenue to $8.5 billion, and an amazing 130% surge in profits, to $1.2 billion!
But the comparison is obviously flawed as H-P closed the EDS acquisition only last August and did not include EDS financial results until then.
Although H-P’s short-term outlook is still sombre, with revenue flat to down 2% sequentially, the world’s largest IT company still sees only a modest revenue drop for the year, at about 4% to 5%.
