Hewlett-Packard reported a net loss of $2 billion for its first quarter of combined operations with Compaq, as the company absorbed $3 billion in layoff and merger expenses. Company executives promised better performance for the current quarter as the new HP wrings costs from its money-losing PC and server businesses.
For the fiscal third quarter ended July 31, HP reported a net loss of 67 cents per share, compared with a profit of $123 million, or 6 cents per share, in the same quarter a year ago. Revenue was $16.5 billion, compared with $10.3 billion last year. HP and Compaq's combined revenue during the comparable quarter last year would have been $18.6 billion.
HP derived about 29% of its third-quarter revenue from printing and imaging; 29% from PCs and handheld computers; 23% from servers, storage, and software; and 18% from IT services. Only printers and services turned a profit. HP lost $198 million on its PC business and $422 million in its enterprise systems group.