The company's printer business, its most consistently profitable unit, was another area of concern.

Compaq ending up selling the printer business to Xerox and took a charge of $50 million.

The company's lucrative printer business continued to thrive.

The consolidation and other costs associated with the ink-jet printer business will reduce earnings per share by 7 cents for the year, the company said.

"We continue to be very confident about our position in the printer business," she said.

Its ink-jet printer business, although growing rapidly, is losing money.

For example, their printer business is very, very strong.

The story was similar in the company's printer business.

Ms. Fiorina said the company had strong growth in its printer business, where it is the worldwide market leader.

For Hewlett-Packard, the printer business now generates sales of more than $17 billion a year.