Seeking Alpha

H-P makes shakeup official, shares now just -1% AH

  • The management shakeup is official. COO Bill Veghte is now in charge of enterprise hardware, and will continue to lead H-P's (HPQ) cloud efforts. Dave Donatelli is now tasked with "identifying early-stage companies with new technologies" (unless he decides to leave). H-P has "no immediate plans" to hire a new COO (Zynga can relate).
  • Also, H-P's PR and marketing units are now under the joint control of new CMO Henry Gomez. Former CMO Marty Homlish is now H-P's "chief customer experience officer."
  • H-P's PC sales fell 11% Y/Y in FQ3. That's better than FQ2's 20% drop, but worse than Dell's 5% July quarter decline. Commercial PCs only -3%, but consumer -22%. Desktops -9%, notebooks -14%. Division op. margin fell 170 bps Y/Y to 3%.
  • Printing revenue -4% vs. -1% in FQ2. Op. margin -20 bps to 15.6%. Hardware units +5% thanks to a 12% increase for commercial (could bolster future supplies revenue), but supplies -4%.
  • Enterprise hardware -9% vs. -10% in FQ2. But op. margin +430 bps to 15.2%. Business critical systems -26% (Itanium decline), x86 servers -11%, storage -10%, tech services -7%, networking flat.
  • Enterprise services -9% vs. -8% in FQ2. Op. margin dove 770 bps to 3.3%.
  • Software +1% vs. -3% in FQ2. Op. margin +250 bps to 20.5%. License revenue was flat, cloud/SaaS revenue up just 4%.
  • SG&A spend -3% Y/Y to $3.27B, R&D -7% to just $797M (job cuts). Only $3M spent on buybacks. Operating cash flow was $2.7B, -6%.
  • FQ3 results, PR

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Comments (3)
  • meta9999
    , contributor
    Comments (193) | Send Message
     
    shares now down just ....uh.......2%... oops make that 4...no never mind maybe 6 ...7 oh......i got it shares now down ONLY 10%. Hey that's great news! See what wonderful things a management shakeup can accomplish?
    21 Aug 2013, 10:26 PM Reply Like
  • SkipK
    , contributor
    Comments (1165) | Send Message
     
    I own 800 shares. If there is a more awful leadership team / board, I don't want to know.
    22 Aug 2013, 02:36 PM Reply Like
  • texaswiz says
    , contributor
    Comments (65) | Send Message
     
    Oh God! Talk about a company flopping around without adequate leadership. Board of Directors hasn't shown me much in a long time. They might have some impressive leadership on the board but without a strong leader, they can never be focused. Just a bad deal all around.
    24 Sep 2013, 06:05 PM Reply Like
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