Ouch! HP reports revenue and profit declines

The new CEO of Hewlett-Packard, Meg Whitman, got the honor of delivering the bad news today in an earnings conference call: revenue and profits were down sharply. Net revenue for HP's Q1, which ended January 2012, was $30.0 billion, down 7% from the prior-year period, while net earnings were $1.5 billion, down 44 percent from the prior year.

"We are taking the necessary steps to improve execution, increase effectiveness and capitalize on emerging opportunities to reassert HP's technology leadership," said Meg Whitman, HP president and chief executive officer in the company's earnings announcement.

HP's computer group reported steep declines in sales, down 15 percent overall, with both desktop and laptop units reporting declining sales – 18 percent and 19 percent respectively. The Imaging and Printing Group also saw sales decline with revenue down 7 percent with consumer printers units sold down 15 percent in the quarter.

HP's earning press release with more details can be found here.