HP is licking its wounds after seeing net profit plunge more than 90 per cent in what it described as a "challenging" year.
Net profit slipped from $2.5bn (£1.6bn) in October 2010 to $239m in October 2011, mainly down to a $2.1bn hit caused by the closure of its WebOS operation and the furore surrounding the PSG "will they, won't they" fiasco.
Turnover was also slightly down, from $33bn in 2010 to $32.1bn in 2011. The vendor saw some growth, with services revenue growing two per cent and software growing 28 per cent.
Its financial services revenue grew 18 per cent but other business areas did not fare quite so well, with ESSN down four per cent, PSG down two per cent and imaging and printing down 10 per cent.
Chief executive Meg Whitman (pictured) stressed the importance of getting back to basics, admitting in a call with analysts that HP had made some poor decisions.
“We confused customers, employees, shareholders and partners on one fundamental question: what is HP?” she said.
Whitman added: “HP has a great opportunity to build on our strong hardware, software and services franchises with leading market positions, customer relationships and intellectual property. “We need to get back to the business fundamentals in fiscal 2012, including making prudent investments in the business and driving more consistent execution.”
Chief financial officer Cathie Lesiak said: “We are remaining cautious heading into FY12 but are focused on delivering our earnings outlook and driving shareholder value.”
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