HP’s EDS acquisition pays off…
HP experienced revenue declines in every area of its business with the exception of Services, which is its EDS unit purchased last year. Services revenue increased 116 percent to $8.7 billion due mostly to the acquisition.
Revenue from notebooks dropped 13 percent, and desktops 25 percent. HP’s total PC shipments were also down 4 percent for the quarter.Chief Executive Mark Hurd remained upbeat during a call with analysts. “We executed well in a challenging market,” he said Wednesday afternoon. “I’m particularly pleased with the results of our Services segment. We now have a second segment with significant recurring revenues.”
The Services unit contributed one third of the company’s profits during the first quarter.
But the Services business was the lone bright spot.
“Though there were pockets of organic growth, the slowdown in IT spending was global,” Chief Financial Officer Cathie Lesjak said.
HP earnings dip nearly 10%, will cut salaries | Business Tech - CNET News