HP Inc. saw its revenues drop by just under one percent in the company’s last fiscal quarter despite a backlog of demand for PCs which CEO Enrique Lores described as “the biggest backlog we've ever had”.
The PC and print giant still beat analysts expectations posting revenue of US$15.26 billion, exceeding estimates by US$540 million.
HP shipped a record 19 million computers with notebooks leading the way. Sales were up 18 percent in the category while sales of workstations and desktops took a hit.
In its print business, Lores told an earnings call that sales of commercial devices dipped but consumer revenue was up 21 percent as a result of the shift to remote working.
“HP's broad and differentiated portfolio and leadership across consumer and commercial market makes our company more resilient across business cycles,” Lores said.
“And secondly, our operational execution including our disciplined pricing, strategy cost reductions, and supply chain agility help us navigate in a very dynamic environment.
"Demand is really driving and continues to grow. We expect that this situation will continue at least through the first half of our fiscal year 2021.
"So it's happening and it's here to stay at least for a couple of quarters."
Lores said supply chain problems had impacted the print business, particularly in supplies.
He told the earnings call that the vendor had not been able to provide adequate stock to its partners for large parts of its last financial year, but said resellers started to replenish stock in the last quarter.