Feeds

HP plows ahead with old strategy intact

Hurding modesty

Providing a secure and efficient Helpdesk

HP's new strategy includes a lot of its old strategy, as the company plans to barrel ahead with its PC, printing and enterprise businesses intact. And with all systems firing, HP expects modest revenue growth in the coming years.

HP is looking for fiscal 2006 revenue of $91bn, said CEO Mark Hurd, during a financial analyst conference Tuesday. That total is up from revenue of $89.5bn in 2005. Things don't improve dramatically in 2007 with HP expecting year-over-year revenue growth between 4 and 6 per cent.

Hurd has been humble since taking over the CEO post at HP, and investors seem to appreciate this attitude. HP has been the best performing Dow Jones component this year, surging close to 40 per cent. HP shares were stagnant during former more flamboyant CEO Carly Fiorina's time at the company.

Despite some pleas to set its PC or printer business loose, HP has no plans to do so, Hurd said. Instead, HP will continue to focus on selling services around its hardware lines, look to improve software sales and keep its printing business going strong. You've heard this pitch before.

"I think we are actually pretty well positioned," Hurd said. He noted that companies which "shove around labor as their only differentiator" will have issues, and this seemed to be his most vocal jab at IBM to date.

Still, there's plenty of work to do.

"We have a lot of things to do to get the company as good as I think it can be in the long run," Hurd said.

HP EVP Ann Livermore boasted that the company's hardware group had improved its profitability through a lot of hard work. Apparently, pushing pink slips around is back-breaking labor. HP is in the midst of a 15,300 person "workforce reduction" that hit the hardware groups hard.

HP continues to count restructuring expenses as "one-time" items in its earnings reports even though it has brought up such charges in 11 of the last 12 quarters. This pattern prompted Bernstein & Co. analyst Toni Sacconaghi to ask HP CFO Bob Wayman about the practice given that such charges appear to be "part of HP's business model."

"The advantage of pulling out of the non-GAPP results is to let you see (the figures) with and without (the charges)," Wayman said.

We doubt, however, if this convenient excuse will go over well with Sacconaghi who, in our opinion, is the most thorough Wall Street analyst. ®

Beginner's guide to SSL certificates

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.