HP has reported a massive loss of $US8.9 billion for the most recent quarter, off revenues of $US29.7 billion.
According to Tom’s Hardware, write-downs and restructuring costs contributed heavily to the loss, including an $US8 billion write-down on the value of its EDS consulting business (purchased for $US13 billion in 2008), a $US1 billion write-down on its Compaq brand, as well as $US1.8 billion in costs related to the redundancy of 4,000 employees.
Excluding once-off charges, the company reported a net profit of $US2 billion off declining revenues across its four major business units.
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CEO Meg Whitman described the desktop PC market as “weak”, leading to high inventories ahead of the release of Windows 8.