Feeds

HP plows ahead with old strategy intact

Hurding modesty

Intelligent flash storage arrays

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
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.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
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?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.