HP has posted revenues of $25.5bn for the second quarter of its 2015 financial year, a seven percent decline on the same period last year. The decline was lower on a constant currency basis at two percent.
The decline led to a major slump in overall profits of 21 percent, falling from $1.3bn to £1bn.
The company also revealed that it expects the split of HP into two separate companies - called Hewlett Packard Enterprise and HP Inc - to save the two businesses between $400m and $450m a year. HP also revealed that it closed its $3bn acquisition of networking firm Aruba in May.
All business units at HP suffered during the quarter. Commercial revenues for computer sales fell seven percent. Within this, desktop PC revenues fell 14 percent while consumer sales were down two percent.
Worryingly for HP, its efforts in the cloud market are not paying off, and software-as-a-service revenue fell five percent. This goes against the general trend in the sector, as most cloud vendors are seeing strong growth.
HP got into a muddle earlier this year when the firm seemed to suggest that it was going to move away from the cloud market in the face of overwhelming competition, only to claim that comments hinting at this were incorrect.
HP enterprise division revenue fell one percent, while storage revenue fell eight percent, Business Critical Systems fell 15 percent and networking revenue was down 16 percent.
The only positive note came from Industry Standard Servers revenue which was up 11 percent.
Despite the decline in revenues and profits, chief executive Meg Whitman was typically upbeat on the company's position, claiming that it is just more proof that the much-touted ‘turnaround’ is still on track.
"I'm pleased with where we ended the quarter, the continued success of our turnaround, and the progress we're making on separation," she said.
"Despite some tough challenges, we executed well across many parts of our portfolio, sustained our commitment to innovation, and delivered the results we said we would.
"HP is becoming stronger as we head into the second half of our fiscal year and separation in November."
With regards to the savings the split will generate, Cathy Lesjak, chief financial officer for the firm, said that the costs are primarily associated with “corporate functions, including finance, legal, IT, real estate and HR”.
Lesjak also said that the firm is hopeful that the arrival of Windows 10 later this year will boost the firm's computer sales, especially in the consumer market, as the XP refresh boost from last year has tailed off.
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