Hewlett-Packard Co. on Tuesday reported second quarter net income of $1.7 billion, or 70 cents a share, down from $2.1 billion, or 80 cents a share in the same period last year as sales fell across nearly all the company's business lines.

The Palo Alto-based company had revenue of $27.4 billion, down 3 percent from $28.3 billion in the previous year.

Excluding items, the company would have earned $2.1 billion, or 86 cents a share.

Sales fell 3 percent to $27.4 billion, which matched analyst estimates. HP says sales would have been up 3 percent were it not for currency fluctuations.

Analysts were expecting earnings of 85 cents a share on revenue of $27.5 billion, according to consensus estimates from FactSet Research.

“Disciplined focus on operational efficiencies and execution drove record cash flow,” said CEO Mark Hurd in a statement.

“Our services business continued to deliver strong profitability with an increased deal pipeline and the EDS integration tracking ahead of schedule.”

Looking ahead, the company said it expects third quarter earnings per share of 64 cents to 68 cents.