News: The company’s revenue declined 11% to $11.6bn in Q2 and net income dropped to $629m.
HP has reported lower than expected revenues for its second quarter as it continues to struggle with weak demand for personal computers and printers.
Revenue declined 11% to $11.6bn in Q2, compared to $13bn for the same period last year.
Net income dropped to $629m, or $0.36 earnings per share, from $1.01bn, or $0.55 earnings per share, a year earlier.
HP’s earnings from continuing operations dropped to $660m, from $733m in the year-ago period.
Revenue in the personal systems business, the company’s largest, declined 10% year over year to $6.9bn, while revenue declined 16% to $4.6bn in the printing division.
Total units declined 9% with Notebook units down 6% and Desktop units down 10%.
Total hardware units were down 16% with commercial hardware units experiencing a drop of 12% and consumer hardware units down 18%. Supplies revenue decreased 16%.
HP used $0.3bn of cash during the quarter to repurchase about 28.7 million shares of common stock in the open market.
The company exited the quarter with $4.6bn in gross cash, which includes cash and cash equivalents, short-term investments, and certain liquid long-term investments.
For the third quarter, the company expects to post 37 cents to 40 cents in adjusted earnings per share.
HP president and CEO Dion Weisler said: "This quarter we delivered strong results and solid progress towards our long term strategy.
"We achieved our operational objectives, unleashed truly amazing innovations, and grew in strategic areas of our business, despite tough market conditions. I’m confident in our ability to execute and remain committed to our plan for growth."
Last month, HP unveiled the Spectre laptop, which it claims is the world’s thinnest with a thickness of just 10.4 mm – in order to compete with Apple’s 13.2mm MacBook.
The results are HP Inc’s second quarterly results since its split-off from Hewlett-Packard last year.
Following the split, HP has carried out a restructuring process under which the company is planning to reduce nearly 3,000 jobs this year.
Hewlett Packard Enterprise has recently announced a tax-free spin-off and merger of its Enterprise Services business with CSC.