Feeds

HP's Superdome is slow seller

And its sales team has been pinching reseller business

  • alert
  • submit to reddit

The essential guide to IT transformation

Hewlett-Packard has reported net profits of $727 million for its Q1, a 12 per cent fall from the $825 million it made for the period a year earlier.

The results matched the lowered expectations HP warned of in January. The company has also said it will only achieve single digit sales growth this year.

Sales for the quarter were $11.9 billion, a 2 per cent rise on the $11.7 billion posted a year before.
Chief Executive Carly Fiorina blamed a "deterioration in the U.S. economy" for the performance. "Clearly, this was a tough quarter and our results reflect that," she said.

Fiorina also owned up to a disaster in its server channel sales policy. Resellers, which had exclusively been selling HP, had now started selling other brands because HP salespeople had started encroaching on their business. This was down to her push to spur on the HP server sales teams, and cutting back on reseller spending programs. Competitors were boosting their dealer schemes at the same time.

HP is now protecting its reseller's customers from HP sales people and adding extra funding to its dealer program.

The results also revealed HP's Superdome Unix server isn't making money fast enough. Turnover from high-end Unix boxes fell 54 per cent from Q1 a year ago, mid-range sales grew 8 per cent, and low end Unix tin jumped 55 per cent.

Sales from business PCs and Intel servers were down 11 per cent. Notebook sales were up 54 per cent. Printer sales were down 4 per cent in the US but up 5 per cent around the rest of the world. US sales fell 6 per cent. Europe grew 6 per cent.

The results included a $365 million charge stemming "from impairment of investments in emerging market companies" and a $102 million charge for scrapping 1,700 marketing positions. ®

Boost IT visibility and business value

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?