HP replaces enterprise chief, posts Q3 sales drop

HP's revenue fell 8 percent, with declines in all but one business unit

Hewlett-Packard reassigned Enterprise Group chief Dave Donatelli on Wednesday as it reported an 8 percent decline in revenue for its fiscal third quarter, saying all of its major divisions except software brought in less money than a year earlier.

Chief Operating Officer Bill Veghte will take over the Enterprise Group, which makes the company's x86 and Itanium servers and its enterprise networking and storage products. Donatelli will take on a new role helping to identify early-stage companies with potentially valuable new technologies, HP said in a press release.

At the same time, the company said it will reassign Chief Marketing Officer Marty Homlish and merge its marketing and communications divisions under Henry Gomez, who is already chief communications officer and will take on the CMO role.

The financial report was gloomy but not unexpected. HP has suffered from declining sales in many of its businesses over the past several quarters.

Despite the lower revenue, HP turned in earnings ahead of its earlier forecast for the quarter. The company earned $0.71 per share, compared with its previously disclosed outlook of $0.56 to $0.59 per share. Not counting one-time items, the company's profit was $0.86 per share, matching the forecast by analysts surveyed by Thomson Financial. HP's revenue also met analysts' expectations.

However, ongoing sales declines continued in the quarter, which ended July 31. The Personal Systems Group suffered the biggest drop, with revenue down 11 percent from a year earlier. Within that division, notebooks were the weakest product category, down 14 percent.

The Enterprise Group logged 9 percent lower revenue, led downward by Business Critical Systems (BCS), which were down 26 percent. BCS includes servers based on the Itanium processor family.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesHewlett-Packardfinancial resultspersonnel

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?