HP released its first quarter financial results for 2015 and both net revenue and first quarter cash flow from operations fell heavily.
First quarter net revenue, 2015 posted at $26.8 billion which is down 5% from the prior-year period and down 2% on a constant currency basis. First quarter cash flow from operations meanwhile was at $744 million, this represents a drop of 75% from the prior-year period.
Meg Whitman, chairman, president and chief executive officer, HP, said: "With the first quarter of fiscal 2015 now behind us, the HP turnaround remains on track."
"We grew operating profit margins across all of our major business segments, increased investment in innovation, and executed well across key areas of our portfolio and in our separation activities. Our progress continues as we head into Q2."
The Enterprise group recorded better results with revenue flat year over year which was helped by Industry Standard Servers revenue up 7%, but those are the only positives as Storage revenue was flat, Business Critical Systems revenue was down 9%, Networking revenue fell 11% and Technology Services revenue dropped down 5%.
More bad news in the Enterprise Services category as revenue for Enterprise Services fell 11% year over year while Application and Business Services revenue was down 11%. Infrastructure Technology Outsourcing revenue also saw a decline of 11%.
Software revenue which was down 5% year over year, while License revenue dropped 16% and professional services revenue was down 7%. SaaS and support revenue were also both flat.
Whitman continued: "While we were able to manage the impact of currency in the quarter and deliver earnings as expected, we believe the impact on FY15 will be significantly greater than we anticipated in November."
"We’ll work hard to offset these impacts through re-pricing and productivity, but fully mitigating currency movements of this size would require reducing investments and mortgaging our future. We won’t do that."
Separately Mårten Mickos, who had been heading up the companies cloud operation, has stepped down from the role. According to an email viewed by Gigaom he will now focus on "customer engagement and advocacy."
Additional shuffling will be taking place as Bill Hiff will be in charge of product strategy, Kerry Bailey will head sales and Mark Interrante will head up engineering. According to the memo they will work with HP CTO Martin Fink.
