In its first combined financial results report since merging with Compaq Computer in May, Hewlett-Packard on Tuesday reported revenue of $US16.5 billion for the third fiscal quarter, to July 31. That was down 9 per cent from the $18.2 billion earned by the two companies together in the previous quarter.
HP reported that operating expenses were down 10 per cent from the same period in 2001, equal to about $400 million.
"Throughout our first 100 days, we've kept our eye on the ball," Carly Fiorina, HP's chairman and CEO, said in a statement. "We're hitting all our integration milestones and are on track to meet our second-half targets. While we have more work ahead, given the tough economy and a major integration, we've accomplished a great deal."
Pro forma earnings per share for the quarter came in at 14 cents, compared with 19 cents in the second quarter and 11 cents one year ago, according to the company.
Michael Capellas, HP's president, said that despite the continuing weak IT market and the complexities of completing the merger, HP's third-quarter performance "reflects an unwavering focus on customers and solid execution of our plans".
In its printer and imaging business, HP reported revenue of $4.7 billion, up 10 per cent over the same quarter in 2001 but down 3 per cent from the previous quarter.
In its enterprise systems businesses, including Unix, Linux and Windows servers, combined company revenue was $3.8 billion, down 8 per cent from the second quarter of the year and off 22 per cent from the same period last year. The reduction was due largely to reduced global IT spending, aggressive competitive discounting and product transitions, the company said.
HP affirmed analysts' estimates of projected fourth-quarter revenue totalling $17.4 billion, or 22 cents per share, on a pro forma basis.
In May, when HP reported its last financial results prior to the merger, the company reported second-quarter results of $10.6 billion. That was down 9 per cent from the second quarter of last year, when the company brought in $11.6 billion in revenue.