Page 2 of 2
In its final quarter as a standalone entity, the Personal Systems Group reported flat revenue year over year with a 5.5 percent operating margin; sales to businesses rose 3 percent while sales to consumers fell 4 percent. HP's Imaging and Printing Group (IPG) revenue declined 10 percent year over year with a 13.2 percent operating margin.
HP in March combined PSG and IPG into a new group called the Printing and Personal Systems group, and Whitman said that so far the merger is "going very well," particularly in terms of supply chain synergies.
Revenue for HP's Enterprise Servers, Storage and Networking (ESSN) division, which is now part of HP's Enterprise group, dropped 6 percent year over year with an 11.2 percent operating margin. Business Critical Systems revenue fell 23 percent, following a downward trend spanning several quarters that HP executives have attributed to Oracle's decision to halt Itanium development.
HP Services revenue dropped 1 percent year over year with an 11.3 percent operating margin.
HP remains cautious about the global IT spending environment, and the company is forecasting earnings per share of 94 to 97 cents for its upcoming fiscal third quarter.
As a result of the cost savings HP is expecting from the layoffs, early retirement and other restructuring, the company is bumping up its full-year earnings per share from $4 to between $4.05 and $4.10.