HP continues to suffer in Q3

Hewlett-Packard Co. continued to be one of the companies hit hardest by the slowdown in technology spending, as the vendor announced lagging results Thursday for its third quarter, citing poor demand for consumer products worldwide as the main reason for a slow quarter.

HP reported fiscal third-quarter revenue of US$10.1 billion, a 14 percent decrease over last year's third-quarter revenue of $11.8 billion. The company also saw earnings decline drastically, posting $111 million in earnings, including gains derived from paying off debt early, compared to $1.04 billion in the same period last year, an 89 percent decrease, according to a financial statement released by HP.

The most recent third-quarter financial figures translate into $0.05 earnings per share for the company. In a revised consensus estimate, analysts polled by Thomson Financial/ First Call predicted HP would pull in $0.04 earnings per share for the period.

The company continued to struggle in several parts of its business, particularly consumer products sales, said Carly Fiorina, HP's chairman and chief executive officer (CEO), in the statement. The company's server and printer lines were also hit hard in the quarter.

The hardware and software maker has been punished by cutbacks in technology spending, prompting some speculation over how long Fiorina will remain at the helm of the company.

Last month, HP announced it was cutting 6,000 jobs and it lowered third-quarter revenue forecasts. The company pointed to slower technology spending and a weak worldwide consumer market as reasons for the moves.

The company already dismissed 1,770 employees in January and 3,000 in April, pointing then to a shortfall in technology spending. Shares of HP (HWP) closed flat at $24.10 on the New York Stock Exchange ahead of the earnings release.

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