HP Warns Investors
- By Scott Bekker
- June 07, 2001
In another bad sign for the IT sector, Hewlett-Packard Co.
issued a warning to investors that the IT spending slowdown is spreading beyond the United States and Europe.
HP's chairman, president and CEO Carly Fiorina delivered the news to a group of investment analysts this week in Palo Alto, Calif., during the company's semi-annual business update.
"While it is still early in the quarter, May was softer than expected and we are now addressing what is clearly becoming a global slowdown. We are taking additional steps to generate revenues and reduce costs while continuing to implement our long-term growth strategy," Fiorina said.
The company describes sales as soft both in consumer and enterprise markets in all regions. The company has reduced its revenue guidance, taking it from flat to down 5 percent for the third fiscal quarter ending July 31.
HP also says it plans cuts to meeting analyst earnings-per-share estimates of 23 cents.
The warning follows Sun Microsystems Inc.'s recent announcement of lowered financial expectations.
Scott Bekker is editor in chief of Redmond Channel Partner magazine.