Hewlett-Packard announced its financial results for its first fiscal quarter ended Jan. 31, 2009. And although it saw a net revenue increase of 1 percent from a year earlier, sales from its Imaging and Printing Group (IPG) and Personal Systems Group (OSG) fell drastically.
Imaging and Printing Group (IPG) revenue declined 19 percent to $6.0 billion. Supplies revenue was down 7 percent, while commercial hardware revenue and consumer hardware revenue declined 34 percent and 37 percent, respectively. Printer unit shipments decreased 33 percent, with consumer printer hardware units down 31 percent and commercial printer hardware units down 39 percent. Operating profit was $1.1 billion, or 18.5 percent of revenue, versus $1.1 billion, or 15.5 percent of revenue, in the prior-year period.
Personal Systems Group (PSG) revenue declined 19 percent to $8.8 billion, with unit shipments down 4 percent. Notebook revenue for the quarter was down 13 percent, while desktop revenue declined 25 percent. Commercial client revenue was down 19 percent, while consumer client revenue decreased 18 percent. Operating profit was $435 million, or 5.0 percent of revenue, down from $628 million, or 5.8 percent of revenue, in the prior-year period.
Although IPG and PSG sales were down, HP did gain revenue due primarily to the EDS acquisition. Services revenue increased 116 percent to $8.7 billion.
HP estimates second quarter of fiscal year 2009 revenue will decline approximately 2 to 3 percent from the prior-year period.