Welcome!

Log Management Authors: Dana Gardner, Pat Romanski, Elizabeth White, David H Deans, Carmen Gonzalez

Related Topics: Log Management, Containers Expo Blog, @CloudExpo

Log Management: Article

HP Keeps Ticking Despite Loss of Hurd

The Quarter Was Decent, Especially Under the Circumstances

HP's performance in the October quarter under its interim CEO, CFO Cathie Lesjak, was slightly better than Wall Street thought it would be.

Lesjak had to step in after Mark Hurd was forced to resign on August 6. The results have nothing to do with Hurd's permanent replacement, the subpoena-dodging Léo Apotheker, who didn't officially pick up the reins until November 1, the beginning of the company's new fiscal year and the day the Oracle v SAP trial started. Oracle wanted the ex-SAP CEO for a witness but Apotheker stayed beyond the reach of Oracle's process servers these last three weeks, reportedly flitting around the world meeting with employees, customers and partners.

During the earnings call Monday Apotheker said, "A competitor has tried to distract us" from running HP.

He said he was at HP headquarters for the call.

Anyway, HP earned $1.33 (non-GAAP), up 17% year-over-year, on revenues up 8% to $33.3 billion in the quarter. Analysts expected it to make $1.27 on $32.7 billion. It reported the same consumer weakness and stronger commercial business as Dell and benefited from the same lower component costs.

This quarter HP is projecting revenue of $32.8 billion-$33 billion, GAAP EPS of $1.06-$1.08, and non-GAAP EPS of $1.28-$1.30, with real estate sales contributing four cents. Analysts expected $1.22 on revenue of $32.72 billion.

Apotheker claimed customers want to do more business with HP, promised to reinstitute the raises that Hurd had curtailed, give HP employees in California a more collaborative workplace and address R&D, which Hurd supposedly shortchanged. Actually sounding little changed from Hurd he said it wasn't a matter of spending more on R&D but "accelerating cycles" and "knocking down silos." Lesjack spoke of incremental investments and counted HP's recent acquisitions as R&D investments.

Unsurprisingly Apotheker said that HP's software position should be doubled or tripled, organically and non-organically. Otherwise he said he wasn't ready to commit the company to new strategy, pushing "a more robust perspective" off a few months.

In the quarter HP's revenues were up 10% in the Americas to $15.1 billion; up 6% in EMEA to $12.4 billion and up 8% in Asia Pacific to $5.8 billion. Revenue from outside of the US accounted for 64% of the total, with revenue in the BRIC countries increasing 12% and accounting for 10% of HP's total revenue.

PCs earned $568 million on revenues up 4% to $10.3 billion, with notebooks down 3% year-over-year and desktop revenue up 13%. Commercial revenue was up 20%, while consumer revenue dropped 10%. The unit's operating margin was 5.5%.

Enterprise Storage and Servers (ESS) revenue were $5.3 billion, up 25%, to earn $730 million. Industry standard server revenues increased 32%. Storage revenue increased 14% and business critical systems revenue grew 10%. Blade revenue was up 51%.

HP's software revenue increased barely 1% to $974 million to yield $247 million. Business Technology Optimization revenue increased 4%, while other software revenue dropped 6%.

HP networking revenue increased 227% in the fourth quarter including the 3Com acquisition, which closed last April. ProCurve revenue grew 50% year-over-year.

Services were only good for a 0.4% revenue increase to $9 billion earning $1.5 billion.

Revenue from HP's printer group was up 8% to $7 billion with ink up 6%. HP said commercial hardware revenue was up 22% and consumer hardware revenue was down 2%. Printer unit shipments increased 14%, with commercial printer hardware units up 43% and consumer printer hardware units up 7%. The division, which has historically been the company's profit generator, earned a flat year-over-year $1.2 billion.

For the 2010 fiscal year HP, the largest IT company in the world, did $126 billion, up 10%, returning $4.58 (non-GAAP) or $3.69 (GAAP), up from $3.14 last year.

It's projecting the 2011 number will be $132 billion-$133.5 billion, earning $4.42 to $4.52 (GAAP) or $5.16 to $5.26 (non-GAAP).

HP has $11 billion in the bank.

 

 

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
Bill Schmarzo, Tech Chair of "Big Data | Analytics" of upcoming CloudEXPO | DXWorldEXPO New York (November 12-13, 2018, New York City) today announced the outline and schedule of the track. "The track has been designed in experience/degree order," said Schmarzo. "So, that folks who attend the entire track can leave the conference with some of the skills necessary to get their work done when they get back to their offices. It actually ties back to some work that I'm doing at the University of San...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...
If a machine can invent, does this mean the end of the patent system as we know it? The patent system, both in the US and Europe, allows companies to protect their inventions and helps foster innovation. However, Artificial Intelligence (AI) could be set to disrupt the patent system as we know it. This talk will examine how AI may change the patent landscape in the years to come. Furthermore, ways in which companies can best protect their AI related inventions will be examined from both a US and...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
Chris Matthieu is the President & CEO of Computes, inc. He brings 30 years of experience in development and launches of disruptive technologies to create new market opportunities as well as enhance enterprise product portfolios with emerging technologies. His most recent venture was Octoblu, a cross-protocol Internet of Things (IoT) mesh network platform, acquired by Citrix. Prior to co-founding Octoblu, Chris was founder of Nodester, an open-source Node.JS PaaS which was acquired by AppFog and ...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...