PALO ALTO (CBS/AP) — Hewlett-Packard says it suffered an $8.9 billion loss during its most recent quarter as the technology company accounted for an acquisition that hasn’t panned out the way management envisioned.
The setback isn’t a surprise. Hewlett-Packard Co. had telegraphed the news earlier when it disclosed plans to take an $8 billion charge to reflect the shrinking value of Electronic Data Systems, a technology consulting service that it bought for $13 billion in 2008.
The fiscal third-quarter loss announced Wednesday translates to $4.49 per share. It’s by far the biggest quarterly setback in HP’s 73-year history. The company earned $1.9 billion, or 93 cents per share, at the same time last year.
HP’s revenue sank 5 percent from last year to $29.7 billion. That was about $500 million below analyst projections.
(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)