The OEM has released its second quarter results for fiscal 2020, recording an 11.2% drop in net revenue from the prior-year period.
HP Inc. and its subsidiaries announced fiscal 2020 second quarter net revenue of $12.5 billion (€11.36 billion), down 11.2% from the same period of the previous year.
Printing net revenue was down 19% year-over-year at $4.2 billion (€3.81 billion) with a 13.2% operating margin. Total hardware units were down 23% with commercial hardware units down 25% and consumer hardware units down 22%.
Supplies net revenue continued the trend downward and was down 15% during the reported period.
HP’s key messages were that office and graphics demand slowed down dramatically as COVID-19 spread and markets shut down. The OEM said that there is continued strong momentum in its Instant Ink programme with total subscribers surpassing seven million. HP says that this is benefitting from the current working from home policy.
“The strength of HP’s diversified portfolio, go-to-market capabilities and balance sheet position us well to navigate macroeconomic challenges and drive long-term value creation,” said Enrique Lores, HP’s President and CEO. “We are seeing strong demand from our customers in notebook PC orders and Instant Ink subscriptions, as well as growing interest in 3D printing and digital manufacturing in key verticals such as healthcare. The current environment will be a catalyst for transformation and innovation across HP.”
HP concluded: “For fiscal 2020, given the level of uncertainty around the duration of the pandemic, the timing and pace of economic recovery and the potential impact of a resurgence in cases, HP anticipates a much wider range of outcomes for the year. As a result, HP will not be providing an outlook for the fiscal year 2020.”
