HP Recorded Losses $8.850 MIllion

 

SAN FRANCISCO – Hewlett-Packard Co. on Wednesday reported losses of $ 8.850 million after a sharp depreciation (gradual repayment of a debt) in the value of its services business, much of which were related to purchase of Electronic Data Systems Corp. (EDS).

The world’s largest maker of computer said its net income fell 5% in the third fiscal quarter to 29.700 billion, slightly below the average estimate of Wall Street of 30.100 million.

The company absorbed a charge of 10,800 million dollars, mostly related to the amortization of its services unit, which had been announced earlier this month.

Analysts had estimated average earnings of 30.100 million, according to Reuters.

HP, which like its smaller rival Dell Inc struggle to counter declining PC sales with service revenues, reported a net loss of 4.49 per share in the third fiscal quarter ended July 31, compared with gains 1,900 million, or 93 cents per share, last year.

Excluding items such as depreciation, the company earned $ 1 per share, beating Wall Street’s target of 98 cents. The titles were negotiated with rise of 2.3%, to 19.66 dollars in after-hours trading market, which ended at $ 19.20.

A senior executive of the company said that in the period were cut 4,000 jobs and estimated that by the end of the fiscal year the figure will be 11,500.

The largest personal computer maker, which employs more than 300,000 people globally , is undergoing a multi-year restructuring that includes cutting 8% of jobs.

The President signed Executive Meg Whitman has urged investors to be patient as you work to boost revenue and reduce costs.

“HP is still in the early stages of a restructuring of several years and we are making decent progress despite the headwinds,” Whitman said in a statement.

“During the quarter we took important steps to focus on strategic priorities, administrative costs, the necessary organizational changes and improvements in the balance sheet,” he added.

HP said it expected to earn between 4.5 and 4.07 per share in fiscal 2012, within the range of Wall Street expectations.

HP bought the outsourcing firm Electronic Data Systems Corp technology in 2008 for 13.900 million.

 

 

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