HP's Hurd Pleased With Quarterly Progress - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Software // Enterprise Applications
News
8/16/2005
05:06 PM
50%
50%

HP's Hurd Pleased With Quarterly Progress

Sales grow 10%, but profits tumble during the fiscal third quarter.

Saying he was "pleased and encouraged" by the progress of Hewlett-Packard since taking over as chief executive and president in March, Mark Hurd said Tuesday that the company was able to meet all its key objectives in its recently completed fiscal third quarter.

For the quarter ended July 31, HP reported earnings of $73 million, or 3 cents per share, on revenue of $20.8 billion. While revenue was up 10% from the $18.9 billion reported in the same period one year ago, the third-quarter earnings represented a substantial drop from the earnings of $586 million, or 19 cents per share, reported for last year's third quarter.

"The objective is to build a strong and healthy HP for the long term while delivering on our short-term commitments at the same time," Hurd said during a conference call Tuesday.

"We have succeeded in doing two difficult things at once: We stayed focused on delivering a strong quarterly performance, and we launched a significant restructuring effort," he said. The quarterly results were the first since Hurd revealed in July HP's intention to reduce its workforce by 14,500 workers, or about 10%.

HP has been able to deliver strong cash flow, see "excellent" performance from its personal systems group, and achieve "steady progress" in its imaging and printing group, Hurd said. The personal-systems group revenue grew by 8% year over year to $6.4 billion, led by 21% growth in notebook computer sales. Overall, he described growth in the PC industry as "steady and stable."

The imaging and printing group had quarterly revenue of $5.9 billion, up 5% year over year. The enterprise storage and servers unit had revenue of $4.0 billion, up 20%. Services revenue was $3.8 billion, up 10%. Software revenue was $249 million, up 11%. And financial services had revenue of $489 million, which was flat.

Hurd said HP decided to exit the iPod business last year because it was an area "we weren't adding a lot of value. ... We couldn't see a grander road." He said there were no other businesses that had been identified to either spin-off or discontinue.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Commentary
Augmented Analytics Drives Next Wave of AI, Machine Learning, BI
Jessica Davis, Senior Editor, Enterprise Apps,  3/19/2020
Slideshows
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
Commentary
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
Slideshows
Flash Poll