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 President Of The USA: Donald Trump
Created by TimA, last reply by Paul1977 on 24-Feb-2017 11:34 (3287 replies)
Pages... 218 219 220


Mikrotik RB 3011 multiple port flapping (Title updated)
Created by RobBB, last reply by RunningMan on 22-Feb-2017 21:54 (57 replies)
Pages... 2 3 4


Vodafone / SKY merger
Created by wingbat45, last reply by richms on 24-Feb-2017 08:56 (134 replies)
Pages... 7 8 9


"Parents' lawsuit claims FaceTime caused daughter's death"
Created by kingdragonfly, last reply by richms on 23-Feb-2017 11:03 (23 replies)
Pages... 2


Android (FB) Messenger App Bugs/Issues
Created by TimA, last reply by tripp on 21-Feb-2017 19:45 (20 replies)
Pages... 2


SureSignal missed calls
Created by hairy1, last reply by froob on 23-Feb-2017 20:23 (19 replies)
Pages... 2


Best way to network my computers
Created by Rikkitic, last reply by Rikkitic on 24-Feb-2017 11:24 (75 replies)
Pages... 3 4 5


Shameful politics, shameless politicians
Created by Rikkitic, last reply by MikeAqua on 20-Feb-2017 14:12 (106 replies)
Pages... 6 7 8