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Hewlett-Packard fourth quarter profits drop by 91%

November 25, 2011 By: Dr Search Principal Consultant at the Search Clinic Category: Computers, Customer Service, internet, Technology Companies, Uncategorized

Hewlett-Packard has unveiled a 91% fall in fourth quarter profits after announcing a £2.1 billion ($3.3 billion)  charge to close down its WebOS business.Hewlett-Packard fourth quarter profits drop by 91%HP reported a profit of £125 million ($200 million) on total sales of £20. 06 billion ($32.1 billion) for the quarter ending 31 October.

This compares to a profit of £1.56 billion ($2.5 billion)  on revenue of £20.81 billion ($33.3 billion) over the same period last year.

The figures are the first since new chief executive Meg Whitman took over.

Despite the slide in profits, revenue rose 1% – analysts had predicted revenue of £20.03 billion.

Ms Whitman took over the firm after her predecessor Leo Apotheker was fired in September.

He had embarked on a series of widely criticised moves to increase HP’s focus on commercial computing hardware and software.

These included cancelling HP’s plans to compete in the tablet and smartphone market with gadgets based on WebOS software that HP acquired when it bought Palm last year – resulting in the £2.06 billion loss which was the biggest contributor to its steep profits fall.

He was also criticised for plans to spin off the firm’s PC division – a decision Ms Whitman reversed on her arrival.

Mr Apotheker also bid £7.8 billion for Autonomy, a software firm based in Cambridge, which analysts felt overvalued the firm by as much as £6 billion.

However, Ms Whitman confirmed the deal would go ahead.

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