Welcome!

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

Related Topics: Log Management

Log Management: Article

HP: Apotheker Sounding More & More Like Mark Hurd

Pesky Reality is Starting to Impinge on Leo's Worldview

So let me get this straight with two quarters of disappointing results at HP under his belt CEO Léo Apotheker finds that he needs to "minimize all hiring" because the company's headcount plans are "unaffordable given the pressures on our business."

What a very Mark Hurd thing to say. Goodness me, next thing you know Léo will be regretting his decision to reinstate HP's Hurd-halted wage increases and looking for unpromising things to cut in R&D.

You see, a copy of a memo Apotheker wrote to senior HP staff May 4 - that CFO Cathie Lesjak co-signed - warning them that "we have absolutely no room for profitless revenue or any discretionary expenditures" happened to flutter onto desks at Bloomberg and the Wall Street Journal late Monday.

That's approximately 48 hours ahead of HP posting its second-quarter results, which Léo has already said won't make the mark, suggesting it may be worse than Wall Street has subsequently modeled.

The memo said the current third quarter is going to be "another tough quarter, one in which we will be driving hard for revenue and profit" and that "we must watch every penny. Lesjak and HR EVP Tracy Keough are now "driving a full headcount re-planning process," it said, to reflect "the new realities of the market and our position."

Bloomberg thumbed back through HP's filings to when Apotheker took over as CEO on November 1. HP then had 324,600 people. One would assume there are going to be less. Last week, the All Things Digital blog came by another couple of internal memos indicating that HP's PC unit had instituted a hiring freeze in Asia-Pac/Japan and freeze on operating expenditures, including travel, in EMEA back in mid-March before the close of the first quarter. The blog said it was told other orders "like them went out around the same time in other divisions within HP."

In Q1 HP delivered better-than-expected earnings, up 16%, but its revenues fell short of the mark and it cut back its revenue guidance for this year by $2 billion, casting a shadow over its growth potential.

Apotheker blamed weak consumer PC sales, including issues in China, and soft valued-added services contracts for his poor fiscal first quarter showing and the company's limpness going forward. Both segments came in below HP's projections.

HP earned $1.36, or $2.6 billion, in the January quarter on revenues of $32.3 billion, up 4% year-over-year, but it was expected to make $1.29 on $32.96 billion based on its own projections.

It said it expected revenues of $31.2 billion-$31.6 billion in Q2 against Wall Street expectations of $32.59 billion, and figured it should realize $1.19-$1.21 a share when $1.25 was expected. Wall Street is now expecting $1.21 on $31.5 billion.

Sanford Bernstein analyst Toni Sacconaghi said it was HP's lowest Q2 guidance sequentially in nine years except for the Great Recession of 2009 and that the back half was loaded above any normal range. 

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
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user e...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
The Founder of NostaLab and a member of the Google Health Advisory Board, John is a unique combination of strategic thinker, marketer and entrepreneur. His career was built on the "science of advertising" combining strategy, creativity and marketing for industry-leading results. Combined with his ability to communicate complicated scientific concepts in a way that consumers and scientists alike can appreciate, John is a sought-after speaker for conferences on the forefront of healthcare science,...
Disruption, Innovation, Artificial Intelligence and Machine Learning, Leadership and Management hear these words all day every day... lofty goals but how do we make it real? Add to that, that simply put, people don't like change. But what if we could implement and utilize these enterprise tools in a fast and "Non-Disruptive" way, enabling us to glean insights about our business, identify and reduce exposure, risk and liability, and secure business continuity?
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
"The Striim platform is a full end-to-end streaming integration and analytics platform that is middleware that covers a lot of different use cases," explained Steve Wilkes, Founder and CTO at Striim, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
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...
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...