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:

Snap have failed our company!
Created by dafman, last reply by kornflake on 21-Oct-2014 23:04 (23 replies)
Pages... 2


Spark Socialiser
Created by freitasm, last reply by Flickky on 21-Oct-2014 22:10 (21 replies)
Pages... 2


Another Trade Me competitor: SellShed
Created by freitasm, last reply by jonathan18 on 21-Oct-2014 23:12 (32 replies)
Pages... 2 3


American legal jurisdiction in New Zealand
Created by ajobbins, last reply by gzt on 21-Oct-2014 14:58 (30 replies)
Pages... 2


Overcharged by Slingshot for months - warning to existing customers
Created by dusty42, last reply by richms on 21-Oct-2014 19:15 (27 replies)
Pages... 2


Why would Suresignal calls be worse quality than non-Suresignal calls from the same location?
Created by Geektastic, last reply by froob on 21-Oct-2014 08:21 (41 replies)
Pages... 2 3


Just bought a TiVo online. No wireless adaptor. Will a standard one work? Or do I need the TiVo one ?
Created by Limerick, last reply by graemeh on 20-Oct-2014 16:03 (11 replies)

Spark Socialiser and new plan
Created by saeran, last reply by eXDee on 21-Oct-2014 21:52 (10 replies)