HP Sees Bright Signs Despite Revenue Decline
HP experienced a two per cent year-over-year decline in net revenue in the third quarter of its 2009 fiscal year, and revenue in most of its business units were down, but one industry analyst said the company's size and diversification will help it do well later this year and into 2010.
According to Mark Hurd, chairman and CEO of HP, the company's business continued to stabilize in the third quarter and revenue was in the higher end of its prior guidance.
"We generated $3.9 billion (US) of cashflow, bolstering our strong balance sheet. I'm pleased with our execution in a tough business climate," Hurd said.
The U.S. remained stable for the second quarter in a row, but the company experienced continuing difficulties in Europe. At the same time, its business in China grew. According to Hurd, HP is realizing the benefits from its own IT transformation, which has resulted $1 billion in savings.