During yesterday’s second-quarter earnings call, HP CEO Meg Whitman noted that the company had another disappointing quarter in networking and software. Revenue for the businesses was down 16 percent and 8 percent, respectively, compared with the same quarter a year ago.
In HP’s first quarter, networking revenue had been down 9 percent from the year-ago period, while software revenue was down 3 percent.
Second-quarter enterprise sales fell 16 percent over the year-earlier period.
Whitman said the less than stellar showing for software and networking was based primarily on license weakness, but she assured those on the call that the HP team is looking to “realigning the portfolio and go to market towards SaaS,” as well as focusing on working more closely with the enterprise division.
For its second quarter, which ended April 30, HP reported revenue of $25.5 billion, down 7 percent from last year’s second quarter. GAAP net earnings came in at $1 billion, compared to $1.3 billion in 2014’s second quarter.
Non-GAAP net earnings per share fell 1 percent this year to 87 cents, beating analyst estimates by a penny.
It’s not all terrible for HP. The Aruba acquisition closed this week, and HP announced a deal whereby Tshinghua University will buy a 51 percent stake in H3C, a new business combining the original H3C with HP’s China-based Server Storage and Technology Services businesses.