HP reports massive $US8.9 billion quarterly loss

HP has reported a massive loss of $US8.9 billion for the most recent quarter, off revenues of $US29.7 billion.

According to Tom’s Hardware, write-downs and restructuring costs contributed heavily to the loss, including an $US8 billion write-down on the value of its EDS consulting business (purchased for $US13 billion in 2008), a $US1 billion write-down on its Compaq brand, as well as $US1.8 billion in costs related to the redundancy of 4,000 employees.

Excluding once-off charges, the company reported a net profit of $US2 billion off declining revenues across its four major business units.

CEO Meg Whitman described the desktop PC market as “weak”, leading to high inventories ahead of the release of Windows 8.