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:

The world's biggest troll Steve Biddle turns 40
Created by scottjpalmer, last reply by allan on 4-Jul-2015 13:59 (108 replies)
Pages... 6 7 8


When are the new snap/2 degrees broadband plans coming out?
Created by Guv, last reply by eXDee on 1-Jul-2015 15:58 (21 replies)
Pages... 2


Ticketek Sort your website - Super15 Final, ticket sales & scalping
Created by keewee01, last reply by mudguard on 3-Jul-2015 15:24 (93 replies)
Pages... 5 6 7


Any new RUM tool for NZ?
Created by pcmac, last reply by freitasm on 1-Jul-2015 21:48 (17 replies)
Pages... 2


Browser does not accept mime type error geekzone?
Created by gzt, last reply by gzt on 2-Jul-2015 21:57 (14 replies)

Vodafone Smart Prime - Some Questions
Created by StevieT, last reply by StevieT on 2-Jul-2015 19:18 (28 replies)
Pages... 2


Moving VDSL jack, is it easy to do?
Created by quebec, last reply by froob on 4-Jul-2015 12:18 (13 replies)

PS4 $417.16 delivered @ The Warehouse
Created by timtait, last reply by Geekzonebro on 4-Jul-2015 11:47 (76 replies)
Pages... 4 5 6