HP posted revenues of $26.8bn for the first quarter of its 2015 financial year, a decline of five percent on the same period last year. The firm also revealed that splitting the company in two will be over $2bn.
Income for HP for Q1 2015 was $1.4bn, the same as Q1 2014, but up slightly on the $1.3bn in the prior quarter at the end of 2014.
However, none of HP’s main business units saw any increases in revenues, and several were down on the same period last year.
Personal Systems was flat year over year and down five percent on the previous quarter. Business sales were down one percent, but consumer sales rose two percent. Notebook sales rose 21 percent, but desktops were down seven percent.
Printing saw revenues decline five percent, and business hardware sales fell six percent within this category. HP Enterprise, which covers servers and critical systems, was flat for the quarter.
Software revenue fell five percent, and enterprise services, which includes applications and business services, was down 11 percent year on year.
HP chief executive Meg Whitman said the figures proved that "the HP turnaround remains on track," but the market saw things differently and shares in the company fell in after-hours trading.
As part of an effort to secure HP’s future the firm announced plans last year to split into two distinct companies: Hewlett-Packard Enterprise, which will focus on enterprise technology infrastructure, software and services businesses; and HP Inc, which will focus on printing and hardware systems aimed at consumers.
HP chief financial officer Cathie Lesjak revealed during an earnings call to discuss the results that the cost of this split will be over $2bn.
“The Q1 charge associated with the separation was $80m and we expect the Q2 charge to be approximately $250m. For the year fiscal 2015 charges are expected to be $1.3bn and the full-year 2016 estimate is $500m," she said.
“While these are large numbers, they represent less than two percent of our annual operating cost and are necessary to realise the potential of the separation into two world class companies.”
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