HP has posted revenues of $25.3bn for Q2 2015, an eight percent decrease on $27.6bn in the same period last year, just months before the company is split in two.
HP made a profit of $854m, a 13 percent decrease on the $1.01bn last year in the same quarter. The falling revenues and profits were caused by several key business divisions floundering.
The firm's PC business saw revenues fall 13 percent, led by a huge 22 percent decrease in consumer sales revenue. Enterprise sales were down nine percent, and the printing unit saw revenues fall nine percent.
Speaking on an earnings call to discuss the results, CEO Meg Whitman attributed the fall in sales to Windows XP in the enterprise market, and Windows 10 in the consumer world.
“In commercial, we had a tough compare with the Windows XP refresh cycle. And in consumer, we faced slightly higher channel inventory levels as customers paused purchasing decisions in anticipation of the Windows 10 launch,” she said.
Software revenues also fell, by six percent, but there was minor growth of two percent in HP's Enterprise Group, led by its server offering, which was up eight percent and its networking division, which rose 22 percent.
This helped offset losses in others parts of the group. Storage revenues fell two percent, Business Critical Systems revenue was down 21 percent and Technology Services revenue was down nine percent.
The general decline across the company comes just a few months before HP is officially split into HP Inc and Hewlett Packard Enterprise. Whitman explained that the split is on track, and that the IT functions for the two firms have now been separated.
“On 1 August we successfully split the operations and IT systems for the company. This was an incredibly complex process, and the team executed very well,” she said.
“We successfully separated nearly 750 systems affecting 95 percent of our business with no issues. After shutting down for just three days to transition, critical operational systems across our business segments are now live globally."
The split is set to be in place by 1 November, and HP's management hopes that it will allow each company to focus on its strengths and achieve more organic growth to turn both firms' fortunes around.
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