Mostly due to write-down of subsidiaries.
In their recent financial call, Hewlett-Packard Co. reported a quarterly loss of $8.9 billion. Overall sales declined by 5% over the previous year, to $29.7 billion, earning them $2 billion for the three months ending July 2012.
While stagnating PC sales was a prime contributor to the low sales, the major reason for the colossal loss is mainly because of the write-down of $10.8 billion for Electronic Data Systems Corp. and other recent acquisitions.
“We are still in the early stage of the turnaround. There will be challenges ahead that could create some variability in performance,” said CEO Meg Whitman to Reuters. “But I’m confident in our ability to work through them and get to where we want to be.”
HP, along with their smaller rival Dell are also trying to face off stiff competition from Asian firms like Lenovo and Acer, not just a consumer market that’s increasingly replacing smartphones and tablets with PCs.