Deutsche Bank analyst Chris Whitmore also added his voice to the cautious chorus. "GMs [Gross Margins] of 23.0% and OMs of 9.0% were lighter than expected (DB at GMs of 23.4% and OMs of 9.3%) despite a 20% Y/Y reduction in R&D," he wrote. "We remain cautious on HP's weak fundamentals, ongoing revenue declines, rapidly declining underlying profitability and challenging macro conditions."

Whitmore has a "sell" rating on HP.

Whitman, who is 23 months into an epic five-year plan to revitalize HP, undoubtedly has her work cut out. Nonetheless, she has vowed to improve the company's margin performance.

"Looking forward we are focused on improving our channel performance, driving cost savings to improve operating margins and bringing new innovations to market in converged infrastructure," she said during the earnings conference call.

-- Written by James Rogers in New York.

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