Hewlett-Packard says revenue growth next year 'unlikely'

Meg Whitman, the chief executive of
Hewlett-Packard, has warned that the
firm is "unlikely" to see revenue growth
next year.
Her comments came as the firm reported
a 8% decline in revenue for the quarter
ending 31 July, from a year ago.
HP has struggled amid falling global PC
sales and rising competition. It was
displaced by China's Lenovo as the
world's top PC maker last year.
The growth warning saw HP shares fall
nearly 6% in after-hours trading.
"What has changed about 2014's outlook
is a couple of things - Enterprise Group's
performance especially during the
quarter," Ms Whitman told analysts
during a conference call after the results.
"Weak execution has amplified the
market challenges we know exist. It's
unlikely... that we'll see the growth in
2014 that I had hoped," she added.
HP reported a net profit of $1.4bn
(£890m) for the quarter, reversing a loss
of $8.9bn during the same period last
year.
The massive loss last year occurred as
the firm wrote down the value of some
assets, mostly related to its purchase of
Electronic Data Systems, which it bought
in 2008.
'More challenging'
Ms Whitman, who took charge of the firm
in late 2011, had previously said that it
was possible for the company to see its
revenues grow next year.
However, global PC sales have been
declining, as customers continue to
switch to smartphones and tablet
computers.
Worldwide PC shipments have now fallen
for five quarters in a row, making it the
"longest duration of decline" in history,
according to research firm Gartner.
That has hurt the fortunes of firms such
as HP, which have struggled to maintain
their growth rates.
"My read was that fiscal 2014 growth
was a stretch goal rather than a baseline
assumption," said Shebly Seyrafi, an
analyst at FBN Securities.
"That has become more challenging."