Rival Dell Computer Corp, which Dodson says is beating Hewlett-Packard in server and personal computer sales, is predicting a 5 percent decline.
Sales of printers and supplies declined 10 percent in the recent quarter. Computer-systems sales fell 22 percent, and software revenue dropped 16 percent.
Hewlett-Packard is counting on new products -- especially in servers that run networks and Web sites -- to pull it out of the slump. Demand for its latest high-end server, dubbed Superdome, rose for the second straight period, Fiorina said. She cited contract wins at Best Buy Co and the American Stock Exchange.
The company reiterated plans to introduce servers with a new chip later this year.
Another bright spot was revenue from computer-network management, or outsourcing, which climbed 20 percent. Consulting revenue rose 9 percent.
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