Down but not out
Hewlett-Packard, the world's second largest supplier of PCs behind Lenovo, reported $25.3 billion in revenue for its fiscal 2015 third quarter ended July 21, 2015, down 8 percent from $27.6 billion in the same quarter a year ago. It was the fourth consecutive quarter that HP's seen a decline.
Only the company's Enterprise Group saw a rise in revenue, which was up 2 percent year-over-year. HP's Personal Systems revenue declined 13 percent, while its printing business saw a 9 percent drop. Similar declines were noted across the board.
With regards to computer sales, HP boss Meg Whitman remains confident in the category.
"That business, depending on what happens with Windows 10, we think, is actually going to come back over the long term," Whitman told CNBC.
Windows 10 launched to the public on July 29, just one week after HP's fiscal third quarter. Whitman noted "there was definitely a consumer pause waiting for Windows 10" and expects "some difficult quarters ahead," but overall, she's confident the PC business will bounce back.
This was the last quarter before HP splits its PC and printer business into a separate entity, which will be known as HP Inc. in November. Whitman will be chair of HP Inc. and CEO of HP Enterprise.
"I'll be a holder of both stocks. And I'm excited about both companies," she told CNBC.
While Whitman remains optimistic, more layoffs are coming. Citing HP CFO Cathie Lesjak, Business Insider says HP plans to slash an additional 5 percent of its workforce over the already scheduled 55,000 job cuts.
The additional cuts are intended to offset costs associated with HP hiring new talent following the split.
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