HP Australia suffers AU$270 million net loss

Hewlett-Packard Australia has reported a net loss for the 2013 financial year, which is nearly five times more than what it recorded the previous year.

Hewlett-Packard Australia has recorded a net loss of AU$270 million for the year to October 31 — nearly five times the loss reported in the previous year, which was AU$58 million.

Based on the company's financial statements filed to the Australian Securities and Investments Commission, obtained by ZDNet, the loss was primarily due to an increase in standard income tax, which cost the business AU$165 million for 2013, instead of AU$30 million, which the company paid in 2012.

HP Australia also reported a dip in revenue down to AU$3.3 billion from the previous year's recorded AU$3.5 billion.

Fewer sales of goods partially contributed to the dip in revenue. 

The company has recently been forced to shake things up in order to remain competitive in a world where it's now all about mobile devices rather than personal computers. Given that the company missed the mobile bandwagon, it said it will concentrate on other technology sectors, such as enterprise services, cloud computing, and security.

HP CEO Meg Whitman announced in January that to do this, there are plans to cut 34,000 employees from its global workforce by the end of this year, which equates to 5,000 more job losses than expected.

In a separate occasion, Whitman defended the company's PC business , saying that contractions are starting to slow, with hopes that it will reflect an improvement in overall margins.

Although, the company will have a lot to answer for when it comes its New Zealand arm where its investment in EDS, in revenue terms, appeared as if it never happened. Based on HP New Zealand's full-year 2013 financial year  results, sales were NZ$555.5 million, a touch above those reported before the acquisition in 2009 (NZ$538 million) and below 2008’s NZ$600 million.

On the plus side, HP Australia was able to reduce total expenses to AU$3.4 billion for the financial year from the 2012 financial report of AU$3.6 billion, mainly because the company was able to cut the cost of inventories.

The local operations also reported that as of October 31, 2013, its liabilities exceeded its assets by AU$114 million.

"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," the company noted in its financial filing.