HP Australia Incurs $243 Million Net Loss

For the financial year ending October 31, 2013, Hewlett-Packard Australia has reported a net loss of AU$270 million (US$243 million), which is almost five times the loss for the previous year. The company also registered a revenue decline to AU$3.3 billion (US$ 297.132 million) from the previous year’s recorded AU$3.5 billion (US$ 315.14 million).

According to the IT website ZDNet, the loss was chiefly due to an increase in standard income tax, which was AU$165 million (US$148.5 million) for 2013. In 2012, the amount was AU$30 million (US$27million).

HP CEO Meg Whitman defended the company’s PC business. But to cut costs and remain competitive, Whitman announced in January that they plan to cut 34,000 employees of its global workforce by the end of this year. The company claims it will focus on other technology sectors, such as enterprise services, cloud computing and security.

In its financial filing to the Australian Securities and Investments Commission, HP Australia noted, “The board of directors have concluded that the consolidated entity is a going concern, as its ultimate holding company, Hewlett-Packard company, has undertaken to provide financial support to the consolidated entity so that it can meet its obligations and liabilities as and when they fall due for at least 12 months from the date of signing these financial statements.”