NEW YORK (AP) — Hewlett-Packard made a profit in the latest quarter, reversing a huge loss a year ago that stemmed from an $8 billion charge. But the technology bellwether's revenue declined amid weakness in the PC market that shows no signs of easing.
Hewlett-Packard Co. said Wednesday that it earned $1.39 billion, or 71 cents per share, in the fiscal third quarter that ended on July 31. That's up from a loss of $8.86 billion, or $4.49 per share, a year ago when the results included a charge to reflect the shrinking value of Electronic Data Systems, a technology consulting service HP bought for $13 billion in 2008.
Excluding one-time items, HP earned 86 cents per share in the latest quarter, a penny below Wall Street's expectations.
"I remain confident that we are making progress in our turnaround," said CEO Meg Whitman in a statement. She added that HP is already seeing "significant improvement" in its business.
Nonetheless, revenue fell in nearly all of the company's business segments, with total revenue down 8 percent to $27.2 billion from $29.7 billion. Analysts expected slightly higher revenue of $27.3 billion, according to FactSet.
HP has been trying to ease the pain of the declining PC market by cutting costs and focusing on more profitable areas. It cut expenses by 34 percent in the latest quarter, to $25.37 billion from $38.5 billion a year ago. But the PC slump still weighs on results. Worldwide shipments were down 11 percent in the April-June quarter, according to data from research firms Gartner and IDC. The industry is experiencing the longest consecutive decline in its history, according to Gartner.