Computer maker Hewlett-Packard’s decision to hack its revenue forecast for the running quarter forced its company’s shares to shed around 12 per cent of their value in morning trading on Wednesday.

Palo Alto, California-based HP announced that it expected profit of $1.21-a-share in the second-quarter, down from an analysts’ average profit forecast of $1.26-a-share. Sales estimates were reported at $31.6 billion, down analysts’ average estimate of $32.6 billion.

For the whole year, HP slashed its sales forecast from $133.5 billion to $131.5 billion. Analysts’ average sales estimate was $133.1 billion.

The technology giant said that the lethargic demand for its services and products forced it to slash profit and sales estimates.

Analyst Abhey Lamba from ISI Group said that HP’s dependence on home-computer purchasers left it vulnerable to the slump. It may be noted here that HP pockets 40 per cent of its total revenue from home-computer shoppers.

HP is suffering slower demand in several areas, including IT outsourcing and datacenter setup.

Speaking on the topic, HP chief executive Leo Apotheker said, “If you use Q1 as a marker, it's clear that we do a lot of things well at HP. It's also clear that we have isolated areas we need to improve.”

HP’s stock closed at $43.59, down 10 per cent, on Wednesday.