Hewlett-Packard (HP) has reported a drop in revenue in the fourth quarter of the year.
The technology giant is set to split its business into two separate companies next year but its trading update has done little to boost investor confidence. HP recorded a 2.5 per cent fall in revenue to $28.4 billion (£18 billion), compared to the same period a year earlier.
HP's earnings report was the first since it announced that it would split its operations. The move will see the company separate its better-performing computer and printer business from its corporate hardware and services operations. It is part of a major restructuring process which has already seen thousands of jobs cut in recent years.
The company is now moving into the fourth year of its five-year recovery plan and the split is an integral part to help it adapt to the changing market. As mobile and online computing becomes even more popular, HP has needed to address its areas of weakness and by splitting its operations it believes this will be made possible.
Despite these more proactive moves, investors have not been impressed with HP's current performance. Alongside the fall in earnings there was also a 5.7 per cent drop in profit in the three months to October year-on-year, reaching $1.3 billion. The company's quarterly revenue fell in almost every business segment.
Meg Whitman, HP's chief executive officer, said: "Our product road maps are the best they've been in years and our partners and customers believe in us.
"There's still a lot left to do, but our efforts to date, combined with the separation we announced in October, sets the stage for accelerated progress in the 2015 financial year and beyond."
HP's share price closed 1.28 per cent down at the close of the market on Tuesday (November 25th) at 37.15.
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