Book Reviews | Gordon Campbell | News Flashes | Scoop Features | Scoop Video | Strange & Bizarre | Search

 


A good first quarter, but HP not out of the woods

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.

 

 

© Scoop Media

 
 
 
 
 
Top Scoops Headlines

 

David Swanson: Torture Is Mainstream Now

As Rebecca Gordon notes in her new book, Mainstreaming Torture, polls find greater support in the United States for torture now than when Bush was president. And it's not hard to see why that would be the case. More>>

Uri Avnery: In One Word: Poof!

Poor John Kerry. This week he emitted a sound that was more expressive than pages of diplomatic babble. In his testimony before the Senate Foreign Relations committee he explained how the actions of the Israeli government had torpedoed the “peace ... More>>

Binoy Kampmark: The Poverty Incentive: Making The Poor Carry The Refugee Can

The poorer you are, the more likely you need to shoulder more. This axiomatic rule of social intercourse, engagement and daily living is simple and brutal enough: the poor shall hold, conserve, preserve. More>>

Nureddin Sabir: BBC Misreports John Kerry On Talks Failure

For once, US Secretary of State John Kerry was not mincing his words when he blamed Israel for the breakdown of talks with the Palestinians. But you would not have known this if you were following the story from the BBC News website. More>>

Gordon Campbell: On Narendra Modi, And The Elections In India

On the upside, the gigantic election process that began yesterday in India is the largest exercise in democracy on the planet. Reportedly, a staggering five million people are employed, directly or indirectly, in the election process. The likely outcome is not quite so welcome... More>>

ALSO:

Ramzy Baroud: Kerry’s Looming Deadline And The Peace Process Industry

As the US-imposed April 29 deadline for a ‘framework’ agreement between the Israeli government and the Palestinian Authority looms, time is also running out for the American administration itself. More>>

Harvey Wasserman: Fighting Our Fossil-Nuke Extinction

The 25th anniversary of the Exxon Valdez disaster has brought critical new evidence that petro-pollution is destroying our global ecosystem. The third anniversary of the Fukushima Daiichi nuclear meltdown in Japan confirms that radioactive reactor ... More>>

Shobha Shukla: Rise In Global Health Financing, But Funding Priorities Shift

A new research done by the Institute for Health Metrics and Evaluation (IHME), at the University of Washington, indicates that globally the total development assistance for health (DAH) hit an all-time high of $31.3 billion in 2013 (a year-over-year ... More>>

Get More From Scoop

 
 
TEDxAuckland
 
 
 
 
Top Scoops
Search Scoop  
 
 
Powered by Vodafone
NZ independent news