Hewlett-Packard shares fell 6 per cent yesterday after the computer and printer company reported lower- than- expected revenues for the final quarter before its controversial purchase of Compaq Computer Corporation.
The firm, which employs 4,500 staff in the Republic and Northern Ireland, said revenues for the second quarter ended April 30th fell to $10.6 billion (€11.68 billion)from $11.7 billion a year earlier. The results missed the analysts' average estimate of $11.1 billion compiled by Thomson Financial/First Call.
Hewlett-Packard also said it saw no signs of meaningful improvement in the industry until 2003, but executives said they were not losing ground to competitors in the wake of the just-closed merger with Compaq Computer, the largest in technology history.
Hewlett-Packard posted a net profit of $252 million, or 13 US cents per diluted share, a leap up from $47 million or two US cents per share in the quarter a year earlier.
Excluding one-time items, the firm posted a pro forma operating profit of $498 million, or 25 US cents per diluted share for its second fiscal quarter, ended April 30, compared with $336 million, or 17 cents per share in the quarter a year earlier.
That met both Hewlett-Packard's own target, set three months ago, and analyst expectations, although revenue missed Wall Street expectations of $11.1 billion.
"Everybody's revenue forecast for the company is going to come down," said Lehman Brothers analyst, Mr Dan Niles. Revenue fell in all segments of the firm's business.
