HP reports $8.9B Q3 loss on writedowns, weak sales, lowers full-year forecast
Hewlett-Packard on Wednesday announced a US$8.9 billion loss for its third quarter ended July 31 due to writedowns and weak hardware sales and also said full-year results would be at the low end of its previous guidance.
Earlier this month, HP said it would take an $8 billion "impairment of goodwill" writedown against its services division. "Goodwill" refers to less tangible assets, such as brand strength, that are considered when figuring out a company's total value. HP's $13.9 billion acquisition of services provider EDS has been roundly criticized as too costly.
HP also said earlier this month that it would have a bigger-than-expected charge in the third quarter in connection with a workforce reduction plan announced earlier this year. Revenue for the third quarter fell 5 percent year over year to $29.7 billion.
