Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.

A good first quarter, but HP not out of the woods
Posted on 22-Feb-2014 19:06 by Bill Bennett. | Tags Filed under: News.



Hewlett-Packard surprised analysts on Friday when it turned in a better than expected first quarter result.

The good news includes better than expected PC sales and less bad news from the enterprise computing front.

On the down side, the company’s IT services business – mainly from what was EDS before HP acquired the company – saw a seven percent fall in revenue compared with the same period a year ago. Margins in the services business fell to just one percent. Given the IT services business is around 20 percent of the company – it leaves a big hole. 

The company is about halfway through a turnaround programme lead by CEO Meg Whitman. Some commentators see the good news as signs of green shoots.

Investors are less optimistic. HP’s share price dropped after the results. It’s not often a company beats expectations and the share price still drops.

HP’s underlying problem is shared with the rest of the big, traditional computer companies. I wrote about it on Friday in Is enterprise hardware doomed?

There’s no easy way out of HP. But there is a possible path. The results show HP has US$16 billion in the bank – that’s enough to invest in the still, relatively, vibrant software sector. On the other hand, it is less than the US$19 billion Facebook paid for the tiny, relatively new Whatsapp business.

 

 

The post A good first quarter, but HP not out of the woods appeared first on digitl.



comments powered by Disqus


Trending now »

Hot discussions in our forums right now:

What time does windows 10 go live?
Created by gogokr431, last reply by mattwnz on 31-Jul-2015 00:06 (408 replies)
Pages... 26 27 28


New site and UFB plans
Created by cws82us, last reply by Publius on 30-Jul-2015 18:21 (121 replies)
Pages... 7 8 9


Do I need to have 7 installed to get 10 ?
Created by xpd, last reply by Regs on 30-Jul-2015 21:04 (117 replies)
Pages... 6 7 8


GST refund on imports returned due to size issues
Created by Geektastic, last reply by raytaylor on 29-Jul-2015 22:57 (29 replies)
Pages... 2


Windows 10 questions
Created by Behodar, last reply by freitasm on 30-Jul-2015 23:47 (23 replies)
Pages... 2


On-line advertising - good or bad?
Created by Rikkitic, last reply by Sideface on 29-Jul-2015 15:25 (63 replies)
Pages... 3 4 5


Clone a proprietary proximity card
Created by berridge, last reply by trig42 on 28-Jul-2015 14:05 (43 replies)
Pages... 2 3


Win10 - What's In It For me?
Created by jim.cox, last reply by Krishant007 on 30-Jul-2015 11:46 (38 replies)
Pages... 2 3