Proactiveinvestors USA & Canada HP https://www.proactiveinvestors.com Proactiveinvestors USA & Canada HP RSS feed en Tue, 23 Jul 2019 14:40:35 -0400 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Multi-billion dollar showdown over Hewlett-Packard’s $11bn Autonomy purchase starts in London’s High Court ]]> https://www.proactiveinvestors.com/companies/news/217126/multi-billion-dollar-showdown-over-hewlett-packards-11bn-autonomy-purchase-starts-in-londons-high-court-217126.html A multi-billion dollar showdown over US technology giant Hewlett-Packard Co’s $11bn purchase of UK software firm Autonomy software in 2011 started in London’s High Court on Monday.

Former Autonomy CEO Mike Lynch, together with his former CFO Sushovan Hussain are being sued by the US group - which in 2015 split into two separate publicly traded companies, HP Inc .(NYSE:HPQ) and Hewlett Packard Enterprise – for damages of around $5bn.

READ: British tech billionaire Mike Lynch charged with fraud in US

The charges allege that the value of former FTSE 100-listed Autonomy was inflated before the sale of the big data firm. Lynch has repeatedly denied the allegations, saying the failure of the acquisition was down to Hewlett-Packard's mismanagement.

On Friday, US prosecutors added three new criminal charges to their indictment against Lynch, including for securities fraud, which carries a maximum prison term of 25 years, as well as additional charges of wire fraud and conspiracy.

The charges were revealed in an indictment filed with the federal court in San Francisco.

Lynch has been engaged in a battle with the group ever since he was fired by former Hewlett-Packard CEO Meg Whitman in 2012, less than a year after the deal was completed.

Hussain was found guilty in a related case in April 2018 in San Francisco but has yet to been sentenced.

The London High Court case is expected to last until the end of the year and it could then take another six months for the judge to reach a decision.

Just over a year after the takeover completed, Hewlett-Packard said it had discovered "serious accounting improprieties" that had inflated the value of Autonomy, leading it to write off more than $5bn in relation to the deal.

Many shareholders had criticised the Autonomy deal before it even completed, with its architect Hewlett-Packard's CEO Leo Apotheker sacked and the board having looked into the possibility of just walking away from the acquisition.

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Mon, 25 Mar 2019 12:18:00 -0400 https://www.proactiveinvestors.com/companies/news/217126/multi-billion-dollar-showdown-over-hewlett-packards-11bn-autonomy-purchase-starts-in-londons-high-court-217126.html
<![CDATA[News - HP Inc runs past the market's fiscal 3Q estimates thanks to profits from personal systems business ]]> https://www.proactiveinvestors.com/companies/news/203580/hp-inc-runs-past-the-market-s-fiscal-3q-estimates-thanks-to-profits-from-personal-systems-business-203580.html Shares in HP Inc (NYSE:HPQ) slipped Friday, a day after the PC maker surpassed Wall Street’s profit and revenue estimates for its fiscal third quarter on the back of a surge in profits from its personal systems business.

For the fiscal third-quarter, the company posted net income of US$880mln, or US$0.54 per share, up from US$696mln, or US$0.41, in the year-ago quarter. On an adjusted basis, its earnings came in at US$0.52 on revenue of US$14.9bln.

The results beat Wall Street’s estimate of US$0.51 on revenue of US$14.27bn, but HP stock fell on the report, shedding 3.3% to US$23.81 in the pre-market session.

The share price fallout was attributed to a slowdown in the operating margin of HP’s printer business, which took over rival Samsung’s printer business last year. While total revenue from its printer business jumped 11% from last year to US$5.19bn, its margin dropped for another consecutive quarter.

Revenue from HP’s personal systems unit, which includes its consumer and commercial PCs and notebooks and contributes the biggest chunk to the company’s sales, jumped 12% in the quarter to US$9.4bn

HP also increased its forecast for its full-year profit to a range of US$2.00 to US$2.03 per share, up from its previous projection of US$1.97 to US$2.02.

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Fri, 24 Aug 2018 09:40:00 -0400 https://www.proactiveinvestors.com/companies/news/203580/hp-inc-runs-past-the-market-s-fiscal-3q-estimates-thanks-to-profits-from-personal-systems-business-203580.html
<![CDATA[News - HP underwhelms with its earnings though notebook sales are a bright spot - AFTER HOURS ]]> https://www.proactiveinvestors.com/companies/news/182932/hp-underwhelms-with-its-earnings-though-notebook-sales-are-a-bright-spot-after-hours-182932.html It's been a mixed results season for clothing sellers but Guess? Inc (NYSE:GES) was definitely one of the winners in the second quarter.

Net income rose to US$16.05mln, equivalent to 19 cents a share, from US$12.31mln (15 cents) in the same period of 2016.

Analysts had penciled in a figure of 10 cents for earnings per share, so unsurprisingly market makers whacked the share price of Guess? up sharply to US$14.20 in after-hours trading; the stock closed at US$12.48 in regular trading on Wednesday.

Revenue rose 5.3% to US$573.69mln from US$544.96mln the year before.

Williams-Sonoma Inc (NYSE:WSM) was another retailer in demand after open-outcry trading finished yesterday, after it posted second quarter earnings per share (EPS) of 61 cents, up three cents on a year earlier and a couple of cents higher than analysts had been expecting.

Revenue climbed 3.4% to US$1.2bn from US$1.16bn the previous year.

The shares were up 7.1% at US$46.50 in screen-based trading.

PVH Corp (NYSE:PVH), the company behind the Calvin Klein and Tommy Hilfiger brands, surpassed expectations with its second quarter earnings, prompting it to raise its earnings outlook for the current financial year.

Second quarter adjusted EPS of US$1.69 beat the consensus estimate by four cents and was even above the company's own guidance range of US$1.60-US$1.63.

Revenue from the Calvin Klein range rose 8% from a year earlier to US$786mln, while the Tommy Hilfiger line's sales climbed 4% to US$892mln.

The shares were 4.6% higher at US$125.60 in after-hours trading.

A name change from Hewlett-Packard to HP Inc (NYSE:HPQ) does not seem to have changed the computer giant's luck, as it once again underwhelmed the market with its financial performance.

Sales of notebook computers were a bright spot in the three months to the end of July, with sales up 16.4%, but sales of desktop computers dipped. Revenue for the group as a whole was up 12% year-on-year to US$8.40bn.

Net earnings from continuing operations in what was the third quarter of the company's financial year fell to US$696mln from US$843mln in the corresponding period of last year.

EPS fell to 41 cents from 49 cents the year before. The group indicated it expected full-year EPS would be somewhere in the US$1.63-US$1.66 range.

As disappointment from HP go, it was not one of its horror stories, and the stock was only down 1.9% in after-hours trading.

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Thu, 24 Aug 2017 06:57:00 -0400 https://www.proactiveinvestors.com/companies/news/182932/hp-underwhelms-with-its-earnings-though-notebook-sales-are-a-bright-spot-after-hours-182932.html
<![CDATA[News - HP inks US$1bln deal with Samsung’s printing arm ]]> https://www.proactiveinvestors.com/companies/news/165737/hp-inks-us1bln-deal-with-samsungs-printing-arm-165737.html Computer giant HP Inc (NYSE:HPQ) has agreed a US$1bln deal with fellow electronics giant Samsung to acquire its printer business.

HP said it had been looking for the chance to “disrupt and reinvent” the US$55bln industry, which it says “hasn’t innovated in decades”.

The US company wants to replace “outdated, complicated” printers and photocopiers with ‘multi-function printer’ technology.

“The acquisition of Samsung’s printer business allows us to deliver print innovation and create entirely new business opportunities with far better efficient, security and economics for customers,” said HP chief executive Don Weisler.

Samsung’s printer business generated revenues of US$1.4bln in the last financial year and owns the rights to more than 6,500 printing patents.

HP anticipates the deal will be earnings accretive in the first full year after the acquisition completes, which should be within 12 months.

The deal comes just days after HP’s sister firm agreed to sell its software business to UK tech business Micro Focus (LON:MCRO).

Shares in HP were down 3c, or 0.26%, to US$13.92.

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Mon, 12 Sep 2016 09:35:00 -0400 https://www.proactiveinvestors.com/companies/news/165737/hp-inks-us1bln-deal-with-samsungs-printing-arm-165737.html
<![CDATA[News - Hewlett Packard Enterprise shares drop after Q3 earnings, unit sale to UK’s Micro Focus ]]> https://www.proactiveinvestors.com/companies/news/163624/hewlett-packard-enterprise-shares-drop-after-q3-earnings-unit-sale-to-uks-micro-focus-163624.html The UK’s Micro Focus (LON:MCRO) is set to acquire the software unit of Hewlett Packard Enterprise (NYSE:HPE) in a deal worth more than $8bn, marking one of the biggest UK tech acquisitions of the year.

Meanwhile, HPE’s shares, which closed up 1.1% at $22.09 in New York on Wednesday, nose-dived by nearly 3% after-hours in the wake of reporting fiscal Q3 revenue that missed analysts’ expectations, but profit that beat, forecast EPS this quarter in line with consensus, and said it will undertake a spin-off and merger of some software properties for cash and an ownership stake.

The software unit that is to be sold to Micro Focus includes all the remaining assets of Autonomy, which HP bought for $11bn in 2011 as well as the company’s standalone software products in areas like big data, IT operations management, and security.

Hewlett Packard Enterprise, which has annual sales of $52bn, will focus its software sales to software products that can also be tied to its hardware sales and other enterprise services.

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Wed, 07 Sep 2016 16:50:00 -0400 https://www.proactiveinvestors.com/companies/news/163624/hewlett-packard-enterprise-shares-drop-after-q3-earnings-unit-sale-to-uks-micro-focus-163624.html
<![CDATA[News - HP Inc tumbles while HP Enterprise gains after earnings results ]]> https://www.proactiveinvestors.com/companies/news/119726/hp-inc-tumbles-while-hp-enterprise-gains-after-earnings-results-119726.html HP Inc. (NYSE:HPQ) sank on Wednesday after the company that houses former Hewlett-Packard's legacy printer and PC business forecast adjusted profit for the first quarter below market expectations. The company is struggling with weak sales of PCs and printers.

On the other hand, Hewlett Packard Enterprise (NYSE:HPE) advanced after the company which holds the corporate hardware and services businesses maintained its adjusted profit forecast for the year.

HP was down 13% at $12.69, while HPE was up 2.3% at $14.01.

"Looking ahead, we expect the PC market to remain challenged for more quarters to come," HP Inc.'s chief executive officer Dion Weisler was quoted as saying on a conference call.

Hewlett-Packard ceased to be on November 1 when it split into two companies, HP Inc. and Hewlett Packard Enterprise.

PC sales have been shrinking sharply worldwide and the recent launch of Windows 10 has so far failed to reboot the industry.

Revenue in HP's personal computer and printer businesses fell about 14% in the fourth quarter ended October 31, pushing Hewlett-Packard's overall revenue down for the fifth straight quarter.

Revenue weakened as consumers shifting to mobile phones and moving away from the printers and personal computers.

HP Inc forecast adjusted profit of $0.33-0.38 per share for the quarter ending January, lagging behind analysts' average estimate of $0.42, according to Capital IQ.

The company also slashed its 2016 adjusted profit forecast to $1.59-$1.69 per share from $1.67-$1.77 per share.
Net income fell to $1.32bn from $1.33bn a year earlier. Revenue fell 9.5% to $25.71bn.
 

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Wed, 25 Nov 2015 13:58:00 -0500 https://www.proactiveinvestors.com/companies/news/119726/hp-inc-tumbles-while-hp-enterprise-gains-after-earnings-results-119726.html
<![CDATA[News - HPQ jumps, HPE falls on day one after HP split ]]> https://www.proactiveinvestors.com/companies/news/116985/hpq-jumps-hpe-falls-on-day-one-after-hp-split-116985.html Hewlett-Packard Inc. (NYSE:HPQ) jumped about 12% on Wednesday, while Hewlett-Packard Enterprise (NYSE:HPE) fell in the first day since Hewlett-Packard Co. split up.

Shares of HP Inc., which sells printers and computers, rose 13% to $13.81 at 2:07 p.m. in New York, giving the company a market value of $24.8bn.

Meanwhile, shares of Hewlett-Packard Enterprise Co., which sells servers, storage devices and services, dropped 1.6% to $14.49, giving the firm a market value of $27bn.

HP is betting that the split will help the two new companies compete better in a fast-changing landscape for gear and services.

Shares of the original HP stock surrendered 33% this year through Friday. Revenue fell 8.1% to $25.3bn in its latest quarter, compared with analyst projections for $25.4bn, according to data compiled by Capital IQ. Sales have declined for 15 of the past 16 quarters.

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Mon, 02 Nov 2015 14:16:00 -0500 https://www.proactiveinvestors.com/companies/news/116985/hpq-jumps-hpe-falls-on-day-one-after-hp-split-116985.html
<![CDATA[News - HP sued by former Autonomy boss Mike Lynch ]]> https://www.proactiveinvestors.com/companies/news/115036/hp-sued-by-former-autonomy-boss-mike-lynch-115036.html Autonomy founder Mike Lynch has launched a US$150mln legal action against Hewlett Packard (NYSE:HPQ) as the fall-out from the disastrous US$11bn acquisition continues to reverberate.

The counter-claim is the latest move in a long-running dispute between the two, with HP recently suing Lynch for US$5.1bn.

HP blamed the accounting practices of Autonomy when it wrote-off three quarters of the 2011 deal’s value just a year later, but these allegations were dismissed by Lynch today.

“Over the past three years, HP has made many statements that were highly damaging to me and misleading to the stock market. 

“Worse – HP knew, or should have known, these statements were false.”

In May, HP set out its case against Autonomy’s former management for the first time, saying it overpaid for Autonomy by at least US$$5bn due to accounting errors.

Lynch added: “We are finally starting to see what really happened with Autonomy. 

“HP’s own documents, which the court will see, make clear that HP was simply incompetent in its operation of Autonomy, and the acquisition was doomed from the very beginning.

“Evidence shows that at the time of the acquisition, HP was in chaos. 

“Before going ahead with the acquisition they discussed firing their CEO. 

“They then tried to abort the deal after closing, ultimately did fire the CEO, and generally fought amongst themselves like cats in a sack, causing Autonomy to disintegrate.

“HP wasn’t misled by us or anyone else – evidence will show they didn’t even read their own due diligence report."

He added that HP’s boss Meg Whitman could explain herself what had happened to a judge, “when we finish this in court once and for all.”

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Thu, 01 Oct 2015 11:45:00 -0400 https://www.proactiveinvestors.com/companies/news/115036/hp-sued-by-former-autonomy-boss-mike-lynch-115036.html
<![CDATA[News - HP to cut another up to 30,000 jobs over three years ]]> https://www.proactiveinvestors.com/companies/news/115035/hp-to-cut-another-up-to-30000-jobs-over-three-years-115035.html Hewlett-Packard (NYSE:HPQ) said it expected to cut another 25,000 to 30,000 jobs over three years as the tech pioneer adjusts to falling demand. Shares gained in premarket trade.

It follows 55,000 job cuts announced earlier this year. 

The company currently has more than 300,000 employees.

The job cuts are part of HP's breakup into two separate publicly traded companies,  scheduled to be completed by the end of next month.

The cuts will take place at the company that will be called HP Enterprise, which will focus on cloud technology and cyber security, while HP Inc. will sell as PCs and printers.

The company, still one of the world's largest technology companies, said the cuts will save $2.7bn in annual costs, although the plan will cost $2.7bn to carry out.

The tech company has struggled over the last decade to keep up with changing demands as clients move away from desktop computers.

In 2012 it lost its position as the world's leading supplier of PCs to Lenovo.

Shares of the Palo Alto, California-based company were up 2.3% to $27.72 as of 9:24 a.m. in New York. The stock has lost 32% this year.


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Wed, 16 Sep 2015 09:25:00 -0400 https://www.proactiveinvestors.com/companies/news/115035/hp-to-cut-another-up-to-30000-jobs-over-three-years-115035.html
<![CDATA[News - HP posts 13% drop in Q3 profit, issues grim outlook before November split ]]> https://www.proactiveinvestors.com/companies/news/115034/hp-posts-13-drop-in-q3-profit-issues-grim-outlook-before-november-split-115034.html Hewlett Packard (NYSE:HPQ) reported a 13% drop in third-quarter earnings and issued current-quarter forecasts below market expectations as the world’s second-largest PC seller continues to struggle amid technology shift toward mobile and cloud computing.

Shares fell as much as 2.9% to $26.54 in New York premarket on Friday. The stock had lost 32% since the beginning of the year through the close of regular trading on Thursday.

Net income fell to $854mln, or $0.47 per share, for the three months ended July 31, from $985mln, or $0.52 per share, a year earlier, the Palo Alto, California-based company said in a statement on Thursday.

Stripping out items, per-share earnings slid to $0.88 from $0.89. The company had guided for $0.83 to $0.87 per share, and analysts had predicted earnings of $0.85 per share.

Revenue decreased 8% to $25.3bn. The Wall Street consensus was for revenue of $25.44 bn.

Revenue at HP's personal computer and printer business fell 11.5%.

Revenue at HP's personal computer business declined 13%, with revenues from sales to consumers were down 22%.

HP's software revenue fell 6% to $900 million.

The earnings report comes as HP plans to split itself into two separate companies on November 1, one for its computer and printer business and one for its corporate hardware and services operations.

HP forecast fourth-quarter adjusted earnings per share in the range of $0.92 to $0.98. Analysts currently expect the company to earn $1.00 per share.

Hewlett-Packard narrowed its adjusted profit outlook for the full fiscal year, to $3.59 to $3.65 share, from the range of $3.53 to $3.73 indicated in May. Analysts currently have an average estimate of $3.64 per share.


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Fri, 21 Aug 2015 09:18:00 -0400 https://www.proactiveinvestors.com/companies/news/115034/hp-posts-13-drop-in-q3-profit-issues-grim-outlook-before-november-split-115034.html
<![CDATA[News - HP to sell 51% stake in Chinese server to state-controlled Tsinghua for $2.3 bln ]]> https://www.proactiveinvestors.com/companies/news/107119/hp-to-sell-51-stake-in-chinese-server-to-state-controlled-tsinghua-for-23-bln-107119.html Hewlett-Packard (NYSE:HPQ) sold a majority stake in its Chinese server, storage and technology assets for $2.3 billion to state-owned Tsinghua University. Shares rose.

A group owned by the Chinese university, Tsinghua Holdings, will purchase the 51 percent stake in a new business called H3C. The deal values the businesses at $4.5 billion net of cash and debt, the companies said in a statement today.

In addition to a 49 percent stake, HP, which is based in Palo Alto, California, will retain the right to appoint H3C’s chairman and chief financial officer, the Wall Stree Journl reported today, citing people familiar with the plan.

The U.S. company is the first major foreign firm to pass control of Chinese operations to local owners since the government stepped up restrictions on overseas hardware companies.

China has been encouraging the use of local suppliers and aims to purge most foreign technology from the country’s banks, military and government enterprises by 2020, Bloomberg reported in December, citing people with knowledge of the matter.

HP will maintain ownership of its other businesses in China, including business services, software, HP Helion Cloud and other operations.

Shares of HP gained 2 percent to $33.74 at 1:53 p.m. in New York, paring this year’s slump to 16 percent.

Under the deal, H3C will become a subsidiary of Unisplendour, a publicly traded unit of Tsinghua Holdings. Unisplendour, a software vendors and system integrator, has been in a long-term strategic distribution partnership with Hewlett-Packard since 1999.

H3C will have about 8,000 staffers and $3.1 billion in annual revenue. HP said the change will allow it to better serve customers in China.

HP inherited H3C when it bought 3Com Corp. in 2010 for about $3 billion. H3C was formed in 2003 as a joint-venture between China’s Huawei Technologies Co. and 3Com. The H in its name stands for Huawei and the 3C for 3Com. The venture quickly grew into a force in the mainland telecommunications market before 3Com bought out Huawei in 2006.

Hewlett Packard is undergoing a broader restructuring as it prepares to split into two companies by October 31.

The H3C transaction is expected to close around the end of the year, 


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Thu, 21 May 2015 13:56:00 -0400 https://www.proactiveinvestors.com/companies/news/107119/hp-to-sell-51-stake-in-chinese-server-to-state-controlled-tsinghua-for-23-bln-107119.html
<![CDATA[News - Hewlett-Packard to buy Aruba Networks in $3 bln deal ]]> https://www.proactiveinvestors.com/companies/news/105715/hewlett-packard-to-buy-aruba-networks-in-3-bln-deal-60157.html Hewlett-Packard (NYSE:HPQ) has announced a definitive agreement to acquire Aruba Networks (NASDAQ:ARUN), a leading provider of network access solution for mobile enterprise, for about $2.7 billion in cash.

The deal values Aruba at $24.67 share, a 1 percent discount to Aruba Network's close on February 27, when the stock reached the highest level in nearly two years following a report about a possible deal. With debt and cash, the deal has a value of $3 billion.

Aruba shares fell 1.5 percent to $24.44 at 10:18 a.m. in New York. HP was up 0.1 percent at $34.92.

Together the companies will deliver converged campus solutions and the new organization will be led by Aruba's chief executive officer Dominic Orr.

Aruba makes hardware and software used to build Wi-Fi networks for customers including China’s Dalian Wanda Group Co., which uses the technology in shopping malls. Other customers include California State University at Los Angeles and the Edzan Hotels & Suites in Qatar.

“Enterprises are facing a mobile-first world and are looking for solutions that help them transition legacy investments to the new style of IT," HP chief executive officer Meg Whitman said in a statement today.

"By combining Aruba's world-class wireless mobility solutions with HP's leading switching portfolio, HP will offer the simplest, most secure networking solutions to help enterprises easily deploy next-generation mobile networks."

The deal is expected to close in the second half of HP's fiscal year 2015, subject to Aruba stockholder and U.S. regulatory approvals.

Hewlett-Packard in October unveiled plans to separate its personal-computer and printer businesses from its corporate hardware and services operations, which has been billed as the growth engine.

HP's deal for Aruba Networks is the largest since its failed 2011 acquisition of software company Autonomy for $11 billion. The deal ended with an $8.8 billion write-down for HP and an inquiry by the Justice Department after HP accused Autonomy of accounting fraud.

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Mon, 02 Mar 2015 10:23:00 -0500 https://www.proactiveinvestors.com/companies/news/105715/hewlett-packard-to-buy-aruba-networks-in-3-bln-deal-60157.html
<![CDATA[News - Hewlett-Packard offers grim forecast as shares drop to four-month low ]]> https://www.proactiveinvestors.com/companies/news/105662/hewlett-packard-offers-grim-forecast-as-shares-drop-to-four-month-low-60082.html Hewlett-Packard (NYSE:HPQ) fell to the lowest in four months after the world’s second-largest computer maker forecast quarterly and full-year profit that trailed analysts’ estimates, and said a rising U.S. dollar will hurt results.

Shares retreated to $34.42, the lowest intraday price since October 21, before trading at $34.65, down 10 percent, at 3:23 p.m. in New York.

The Palo Alto, California-based company, which prepares to split in two, said profit before certain items in the fiscal second quarter ending in April will be $0.84 to $0.88 per share.

Analysts on average projected $0.95, according to data compiled by Capital IQ.

For fiscal 2015, profit will be $3.53 to $3.73 a share, short of an estimate for $3.95.

The dollar has gained 21 percent against the euro in the past 12 months, eroding the value of revenue U.S. companies generate overseas when it’s brought back home. Hewlett-Packard got 65 percent of sales outside of the U.S. in fiscal 2014. That compares with 55 percent outside the Americas at International Business Machines Corp., and 83 percent for Intel Corp.

HP, which has struggled to adapt to the new era of mobile and online computing, is preparing to split into two listed companies later this year, separating its computer and printer businesses from its faster-growing corporate hardware and services operations.

Overall revenue dropped 4.7 percent to $26.84 billion in the first quarter ended January 31.

The company's overall after-tax net income dropped to $1.37 billion, or $0.73 per share, from $1.43 billion, or $0.74 per share, a year earlier.

Excluding items, the company earned $0.92 per share.

Analysts on average had expected a profit of $0.91 per share and revenue of $27.34 billion, according to Capital IQ.

 

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Wed, 25 Feb 2015 15:31:00 -0500 https://www.proactiveinvestors.com/companies/news/105662/hewlett-packard-offers-grim-forecast-as-shares-drop-to-four-month-low-60082.html
<![CDATA[News - HP posts weaker Q4 sales, reports declines in almost every segment ahead of split ]]> https://www.proactiveinvestors.com/companies/news/104387/hp-posts-weaker-q4-sales-reports-declines-in-almost-every-segment-ahead-of-split-58398.html Hewlett-Packard (NYSE:HPQ), the PC and printer company, reported declines in almost every business segment in its fiscal fourth quarter, underlining weaknesses as it prepares to split in two next year. Shares fell.

Total sales fell 2.5 percent to $28.4 billion in the quarter ended Oct. 31 from $29.13 billion a year earlier, the Palo Alto, California-based company said in a statement late yesterday. That missed analysts’ average projection for revenue of $28.8 billion.

Excluding items, net income declined 2.7 percent to $2.01 billion, or $1.06 per share, matching analysts' expectations.

Overall, net income dropped 5.7 percent to $1.33 billion, or $0.70 per share, from $0.73 per share a year ago.

Fourth-quarter sales in the PC unit climbed 4 percent from a year earlier, led by corporate demand, while sales in the printing group fell 5 percent.

Enterprise services revenue retreated 7 percent in the quarter, and enterprise group sales -- made up of products like servers and storage -- dropped 4 percent. The software and financial-services groups each reported a revenue decline of 1 percent.

PCs are in a transition of their own, with tablet computers, laptops and notebooks increasingly overlapping in quality and function.

The company said last month it would split into two listed companies next year, separating its computer and printer businesses from its faster-growing corporate hardware and services operations, and eliminate another 5,000 jobs as part of its turnaround plan.

"I've always said that turnarounds aren't linear," the company’s chief executive officer Meg Whitman told analysts on a conference call yesterday while highlighting HP's performance compared with three years ago, when she became CEO. "We're right where we thought we'd be."

When HP becomes two companies, Ms. Whitman will be chief executive of Hewlett-Packard Enterprise, and nonexecutive chairman of HP Inc., the PC company.

Looking ahead, the company said it expects full-year 2015 earnings to be $3.83 to $4.03 per share, up from $3.74 for 2014.

Shares were down 0.8 percent at $37.33 in premarket trades. The stock has rallied 34 percent so far this year.

 

 

 

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Wed, 26 Nov 2014 08:59:00 -0500 https://www.proactiveinvestors.com/companies/news/104387/hp-posts-weaker-q4-sales-reports-declines-in-almost-every-segment-ahead-of-split-58398.html
<![CDATA[News - HP rises on plans to split PC, printers business into separate public company ]]> https://www.proactiveinvestors.com/companies/news/103544/hp-rises-on-plans-to-split-pc-printers-business-into-separate-public-company-57234.html HP (NYSE:HPQ) shares were on the rise Monday after confirming plans to spin off its PC and printing operations into a separate, publicly-traded company, its latest effort to turn around its fortunes.

The transaction, which is expected to be completed by the end of fiscal 2015, will see the PC and printer business retain the current HP Inc logo and name, while its business tech infrastructure, software and services units will become a separate public company known as Hewlett-Packard Enterprise. 

After the deal is completed, on a tax-free basis, shareholders of HP will own shares of both companies. 

Dion Weisler, currently executive VP of HP's printing and personal systems business, will become president and chief executive officer of the new HP, while Meg Whitman will head up the operations of Hewlett-Packard Enterprise. 

"The decision to separate into two market-leading companies underscores our commitment to the turnaround plan," said Whitman, referring to the company's five-year turnaround plan to rebuild its balance sheet, of which it approaches its fourth year.

"It will provide each new company with the independence, focus, financial resources, and flexibility they need to adapt quickly to market and customer dynamics, while generating long-term value for shareholders."

The company said the transaction will allow both companies to better compete in each respective market, with Hewlett-Packard Enterprise able to build on its position in servers, storage, networking, and software as well as its OpenStack Helion cloud platform.

The separation is expected to provide the new entity with additional resources, and less debt at the operating company level, to support investments across key areas of the portfolio. 

Meanwhile, HP will be able to focus on new technologies like 3D printing and new computing experiences.

Whitman will remain chairman of HP Inc when the separation is complete, and will also serve on the board of Hewlett-Packard Enterprise, while Pat Russo will move from lead independent direct of HP to chairman of Hewlett-Packard Enterprise.

The company also reaffirmed its adjusted net earnings outlook for the year of $3.70 to $3.74, in line with analyst expectations of $3.73 per share. It estimates earnings, excluding one-time items, of $3.83 to $4.03 per share in fiscal 2015, compared to estimates of $3.96 per share.

HP has laid off tens of thousands of people in recent years amid slumping sales for its desktop and laptop computers, demand for which has waned in the face of smartphones and tablets, ever since the introduction of the iPad in April 2010. Its latest round of layoffs is expected to be completed this month. During its most recent quarter, the company reported revenue of $27.6 billion, a 1 percent increase from the year-ago period.

The proposed split still requires approval from HP's board of directors.

Shares of the Palo, Alto, California-based company were up 4.8 percent at US$36.89 as of 10:38am ET, stretching year-to-date gains to more than 31 percent.

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Mon, 06 Oct 2014 11:14:00 -0400 https://www.proactiveinvestors.com/companies/news/103544/hp-rises-on-plans-to-split-pc-printers-business-into-separate-public-company-57234.html
<![CDATA[News - HP touches 5-week low on report it may face 10-year ban as Canadian gov't supplier ]]> https://www.proactiveinvestors.com/companies/news/103420/hp-touches-5-week-low-on-report-it-may-face-10-year-ban-as-canadian-govt-supplier-57063.html Hewlett-Packard (NYSE:HPQ) fell to a 5-week low after The Globe and Mail reported the personal-computer maker may face a 10-year ban as the Canadian government’s technology supplier. 

Shares declined 2.1 percent to $35.23 at 1:58 p.m. in New York, after reaching $35.17, the lowest intraday price since Aug. 10. The stock is up 26 percent this year.

The Globe and Mail newspaper reported that HP, one of the biggest technology suppliers to the Canadian government, is facing a ban following a U.S. bribery conviction in April involving money paid to Russian government officials. 

The recent criminal conviction marks the first major test of strict new Canadian integrity rules quietly introduced in March by Public Works and Government Services.

Under the new regime, companies face an automatic ban on future government contracts if they or any of their affiliates are convicted of a list of various crimes, such as bribery, even if those crimes occurred outside Canada.

Unlike the United States and the European Union, Canada’s tough stance doesn’t offer companies who run afoul of the rules a way to come clean and win reinstatement, such as dismissing the employees who committed the offences.

Ottawa does reserve the right to lift the 10-year ban if there are no other available suppliers or if there is a compelling public interest to award a contract, the Globe said.


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Thu, 25 Sep 2014 14:03:00 -0400 https://www.proactiveinvestors.com/companies/news/103420/hp-touches-5-week-low-on-report-it-may-face-10-year-ban-as-canadian-govt-supplier-57063.html
<![CDATA[News - HP snaps 11-quarter revenue decline streak; profit matches estimates ]]> https://www.proactiveinvestors.com/companies/news/102933/hp-snaps-11-quarter-revenue-decline-streak-profit-matches-estimates-56336.html Hewlett-Packard (NYSE:HPQ), the world's largest maker of personal computers, reported an unexpected increase in quarterly revenue after sales from its personal computer division climbed 12 percent. Shares fluctuated.

Revenue rose 1.3 percent in the three months ended July 31, the Palo Alto, California-based company said late yesterday. It was the first sales increase after 11 straight quarters of decline. This result topped the average analyst projection of $27 billion.

Net income slipped to $985 million, or $0.52 per share, in the May-to-July period, from $1.4 billion, or $0.71 per share, a year earlier. That figure came in line with Wall Street's consensus.

"Overall, I'm very pleased with the progress we've made," Chief Executive Officer Meg Whitman said in the statement. "When I look at the way the business is performing, the pipeline of innovation and the daily feedback that I receive from our customers and partners, my confidence in the turnaround grows stronger."

HP is undergoing a major overhaul aimed at cutting costs and re-orienting itself toward higher-margin businesses such as computing infrastructure. It's trying to reduce a reliance on PCs and move toward servers, storage and networking for enterprises.

Shares wavered between gains and losses in New York premarket today. The stock closed down 1 percent at $35.12 yesterday, paring this year's rally to 26 percent.

The company's financial performance suffered largely because of a $649 million charge to cover another round of mass layoffs and other restructuring moves. HP is in the process of eliminating another 11,000 to 16,000 jobs by October, expanding upon the 34,000 employees that it had already been jettisoning from its payroll.

For the current quarter ending in October, HP predicted its adjusted earnings will range from $1.03 to $1.07 per share.

It narrowed its earnings forecast for the full year to $3.70 to $3.74 per share, from $3.63 to $3.75. 

 

 

 

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Thu, 21 Aug 2014 08:50:00 -0400 https://www.proactiveinvestors.com/companies/news/102933/hp-snaps-11-quarter-revenue-decline-streak-profit-matches-estimates-56336.html
<![CDATA[News - HP edges higher as company plans to eliminate up to 16,000 more jobs ]]> https://www.proactiveinvestors.com/companies/news/101459/hp-edges-higher-as-company-plans-to-eliminate-up-to-16000-more-jobs-54299.html Hewlett-Packard Co. (NYSE:HPQ), the world's largest computer maker, inched up in early trading in the wake of saying it is cutting thousands more jobs in an effort to relieve pressure on its profit margins amid a rapidly changing technology landscape.

Shares were up less than 0.1 percent to $31.80 at 8:10 a.m. in New York.

The Palo Alto, California-based company, which had originally planned to shed a total of 34,000 jobs as part of a multiyear restructuring plan, said yesterday that it aims to cut another 11,000 to 16,000 jobs by October.  

At the midpoint of that range, the new cuts would trim an additional 4 percent from HP's workforce of about 317,500 employees.

News of the job cuts came as HP announced results for its fiscal second quarter, unveiling a drop in revenue that overshadowed higher profit. 

The quarterly numbers were accidentally posted on HP's website ahead of schedule and before the close of regular trading yesterday. HP shares, which had been trading higher earlier in the session, fell following the disclosure by more than 2 percent to $31.78 at 4 p.m. The stock slid more in after-hours trading before rebounding slightly.

Consumers are buying fewer personal computers and printers as they embrace smartphones and tablets, and companies are opting to use more software via the Internet or building their own machines.

Profit excluding certain costs in the period ended April 30 was 88 cents per share and revenue dropped 1 percent to $27.3 billion, the Silicon Valley giant said in a statement yesterday. That quarterly revenue decline was the 11th consecutive one for HP. 

Analysts on average had predicted profit of 88 cents and sales of $27.4 billion, according to  Bloomberg.

Overall, net income in the second fiscal quarter rose 18 percent to $1.27 billion, or 66 cents per share, from $1.08 billion, or 55 cents per share, a year earlier. 

"With the first half of our fiscal year completed, I'm pleased to report that HP's turnaround remains on track," Chief Executive Officer Meg Whitman said in the statement. "With each passing quarter, HP is improving its systems, structures and core go-to-market capabilities. We're gradually shaping HP into a more nimble, lower-cost, more customer- and partner-centric company that can successfully compete across a rapidly changing IT landscape."

Moving ahead, HP forecast that profit, excluding amortization, restructuring charges and other costs, will be 86 cents to 90 cents a share. That compares with the average analyst estimate for 90 cents. For the full year, the company forecast earnings of $3.63 to $3.75 a share, compared with Wall Street's estimate for $3.71.

Industrywide global PC shipments declined in the first quarter as consumers in emerging markets opted for smartphones and tablets, while corporate demand helped slow the pace of decline. Quarterly shipments fell 4.4 percent to 73.4 million units, IDC said. HP’s market share rose to 16 percent, making it the second-largest vendor after Lenovo Group Ltd., Gartner Inc. said last month.

HP's product range spans from PCs and home printers to the servers, networking gear and software used by corporations. HP has fallen behind in mobile computing at a time when consumers have migrated to smartphones and tablets made by Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co. (KRX:005930).

 

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Fri, 23 May 2014 08:54:00 -0400 https://www.proactiveinvestors.com/companies/news/101459/hp-edges-higher-as-company-plans-to-eliminate-up-to-16000-more-jobs-54299.html
<![CDATA[News - Hewlett-Packard posts upbeat Q1 sales, lifts outlook ]]> https://www.proactiveinvestors.com/companies/news/99993/hewlett-packard-posts-upbeat-q1-sales-lifts-outlook-52231.html Hewlett-Packard Co. (NYSE:HPQ), the largest personal-computer maker, advanced in pre-market trading after posting fiscal first-quarter sales and profit that surpassed estimates and signaling a better year ahead.

HP's shares rose 0.9 percent to $30.45 at 8:21 a.m. in New York. The stock had rallied approximately 8 percent this year through the close of regular trading yesterday.

Stripping out some costs, per-share earnings in the three months ended Jan. 31 was 90 cent share on revenue of $28.2 billion, the Palo Alto, California-based company said in a statement yesterday. Analysts on average estimated earnings of 84 cents on revenue of $27.2 billion, according to Bloomberg.

The 75-year-old company is working to reshape itself as the PC market shrinks by moving toward computing equipment and networking gear and software used by enterprises.

First-quarter net income grew 16 percent to $1.43 billion, or 74 cents a share, from $1.23 billion, or 63 cents, a year earlier. Revenue slipped less than 1 percent from the $28.4 billion in the year-earlier period.

For the fiscal second quarter ending in April, profit before certain costs will be 85 cents to 89 cents a share, the company said. That compares with the average analyst estimate for 89 cents.

For the full year, H-P raised the bottom end of the view by five cents a share, now seeing per-share profit between $3.60 and $3.75.

"HP is in a stronger position today than we've been in quite some time," Chief Executive Officer Meg Whitman said in the statement. "Innovation is igniting our comeback, and at a time when many of our competitors are confronting new challenges, two years of turnaround work is setting us up for an exciting future."

PC shipments retreated for a seventh straight quarter, dropping 6.9 percent, as consumers continued to choose smartphones and tablets over laptops, according to researcher Gartner Inc.

First-quarter revenue in the personal-systems unit, which includes PCs, rose 3.6 percent to $8.53 billion, boosted by sales of business computers. Printing-division sales dropped 2.2 percent to $5.82 billion. The enterprise-computing unit, which includes servers, had sales of $6.99 billion, little changed from a year earlier.


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Fri, 21 Feb 2014 08:51:00 -0500 https://www.proactiveinvestors.com/companies/news/99993/hewlett-packard-posts-upbeat-q1-sales-lifts-outlook-52231.html
<![CDATA[News - Hewlett-Packard Q4 sales exceed estimates; shares rise ]]> https://www.proactiveinvestors.com/companies/news/98722/hewlett-packard-q4-sales-exceed-estimates-shares-rise-50217.html Hewlett-Packard Co. (NYSE:HPQ), the world's largest maker of personal computers, jumped in early trading after reporting fiscal fourth-quarter revenue and profit that exceeded analysts’ estimates.

HP shares spiked 7 percent to $26.85 at 5:46 a.m. in New York. The stock has rallied 76 percent so far this year, outpacing a 33 percent gain in the Nasdaq Composite (INDEXNASDAQ:.IXIC).

Sales for the three months ended Oct. 31 were $29.1 billion, the Palo Alto, California-based company said yesterday. Analysts on average were looking for $27.8 billion. 

HP swung to a profit of $1.41 billion, or 73 cents a share, in the quarter, compared with a net loss of $6.85 billion, or $3.49 a share, a year earlier.

Profit stripping out unusual items was $1.01 a share, compared with the $1 average estimate.

Looking ahead, adjusted earnings will be 82 cents to 86 cents a share for the current period, compared with the average 85-cent estimate.

HP has tried to offset declining PC demand by cutting costs and focusing on more profitable areas such as commercial and home printing. The personal computer industry has struggled in recent years as consumers turn their attention toward smartphones and tablet computers. 

Worldwide personal computer shipments plummeted 8.6 percent in the third quarter from a year ago, with back-to-school PCs moving at the lowest level since 2008, USA Today reported, citing researcher Gartner. HP shipped 13.7 million PCs in the quarter, compared with 13.5 million in same period a year prior.

Those declines come as worldwide smartphone shipments are forecast to surge nearly 40% to more than 1 billion units this year, according to IDC.

"Our Q4 results demonstrate that HP's turnaround remains on track heading into fiscal 2014," Chief Executive Officer Meg Whitman said in the statement. "While we still have much more work to do, our business units and their core assets are delivering on HP's strategy to help customers thrive by providing solutions for the New Style of IT."

HP's operating margins eroded in the quarter. Adjusted operating margin slipped to 9 percent, from 10.4 percent a year earlier, reflecting aggressive competition from rivals such as Dell Inc. and Lenovo Inc.

Revenue fell across most of HP's business divisions except the enterprise group, whose sales edged up to $7.6 billion. Sales from HP's largest, PC-focused unit skidded 2 percent to $8.58 billion while the printing division's sales dived 1 percent to $6.04 billion.

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Wed, 27 Nov 2013 07:00:00 -0500 https://www.proactiveinvestors.com/companies/news/98722/hewlett-packard-q4-sales-exceed-estimates-shares-rise-50217.html
<![CDATA[News - Hewlett-Packard gains on encouraging Whitman remarks ]]> https://www.proactiveinvestors.com/companies/news/97832/hewlett-packard-gains-on-encouraging-whitman-remarks-48805.html Hewlett-Packard Co. (NYSE:HPQ) shares advanced on Wednesday after CEO Meg Whitman told analysts that the company's revenue is expected to stabilize in fiscal 2014, seeing "pockets of growth", with sales expected to accelerate into 2015. 

The PC maker is expected to report total revenues of about $111 billion for the fiscal year that ends in October, according to FactSet, down about 7.4% from the previous year. 

The chief executive's remarks follow her warning in August that the company did not expect to grow revenue in fiscal 2014 given the struggling PC market, which prompted many analysts to expect a downbeat tone from the analyst meeting today. 

But instead, while acknowledging that H-P faces competition from even current-long term partners such as Intel (NASDAQ:INTC) and Microsoft (NASDAQ:MSFT), Whitman said she felt comfortable with the company's progress thus far, especially its new focus on the "the New Style of IT". 

As more technology spending shifts to smart-phones and tablet computers, H-P has had to struggle with declining PC sales, and has overhauled its product line and pushed into more profitable niches in business software, data analysis and storage and technology consulting. 

The upbeat talk prompted the biggest percentage gain since May, lately up 5.7% at US$21.94 in New York, hitting a daily high of $22.76 earlier in the session. So far this year, its stock has advanced almost 54%. 

In August, the second-biggest personal-computer maker after Lenovo reported a big decline in third-quarter earnings and providing a weak forecast amid fading demand for PCs. For the fiscal third quarter through July 31, adjusted earnings were 86 cents a share, below the 87 cents a share analysts had projected. Sales fell 8 percent to $27.2 billion.

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Wed, 09 Oct 2013 13:50:00 -0400 https://www.proactiveinvestors.com/companies/news/97832/hewlett-packard-gains-on-encouraging-whitman-remarks-48805.html
<![CDATA[News - HP hits 3-month low on weak 3Q results, 2013 guidance ]]> https://www.proactiveinvestors.com/companies/news/96989/hp-hits-3-month-low-on-weak-3q-results-2013-guidance-47340.html Hewlett-Packard Co. (NYSE:HPQ), the second-biggest personal-computer maker after Lenovo, retreated to the lowest price in three months, after reporting a big decline in third-quarter earnings and providing a weak forecast amid fading demand for PCs.

The shares tumbled 13 percent to $22.18 at 10:29 a.m. in New York after hitting $21.81, the lowest intraday price since May 22. The stock had gained 78 percent this year before today.

For the fiscal fourth quarter, per-share profit taking out one-time items will be in the range of 98 cents to $1.02, the Palo Alto, California-based company said in a statement yesterday. Analysts on average predicted $1.01 a share, according to data compiled by Thomson Reuters.

For the full fiscal year ending Oct. 31, per-share earnings will be $3.53 to $3.57, down from with the company's earlier forecast of $3.50 to $3.60. Analysts were modeling $3.57 a share.

HP suffers from a decline in personal-computer sales as more technology spending shifts to smart-phones and tablet computers. The company is overhauling its product line and pushing into more profitable niches in business software, data analysis and storage and technology consulting. 

For the fiscal third quarter through July 31, adjusted earnings were 86 cents a share, below the 87 cents a share analysts had projected. Sales fell 8 percent to $27.2 billion.

The company also announced a shake-up of its top ranks, appointing Chief Operating Officer Bill Veghte as head of its enterprise business, to take over from Dave Donatelli. Chief of Communications Henry Gomez was promoted to chief marketing officer, replacing Marty Homlish.

 

 

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Thu, 22 Aug 2013 10:52:00 -0400 https://www.proactiveinvestors.com/companies/news/96989/hp-hits-3-month-low-on-weak-3q-results-2013-guidance-47340.html
<![CDATA[News - HP headed for 12-month high after Citi upgrade ]]> https://www.proactiveinvestors.com/companies/news/96134/hp-headed-for-12-month-high-after-citi-upgrade-45904.html Hewlett-Packard Co. (NYSE:HPQ), the one-time world's largest personal-computer maker, climbed in premarket New York trading, set for the highest price in more than a year, after Citigroup Inc. advised investors to buy the stock. 

HP advanced 3.1 percent to $26.25 at 8:28. 

Citigroup upgraded its recommendation for the Dow member to "buy" from "sell" and doubled its price estimate for the shares to $32. 

Citi cited increasing benefits from a lot of HP's $3 billion in cost savings in the second half of the year, as well as increasing momentum from HP's services segment.

Jim Suva of Citi Investment Research said that the consensus among analysts seems to be underestimating the financial benefits of these costs savings for not only the second half of 2013, but for 2014 and 2015 as well.

"We anticipate that HP's [earnings per share] revisions are now likely to start increasing in 2014 for the first time in nine quarters," Citi said.

He said HP's shares have also outperformed over the past twelve months, up 30 percent, compared with a 22 percent increase in the S&P 500 index (INDEXSP:.INX). Suva believes HP's stock can move higher. The shares are up approximately 79 percent so far this year.

On Tuesday, the stock was lifted to "buy" from "hold" at Brean Capital. 

The current consensus among 32 analysts is to "hold" the stock.

HP began a multi-year turnaround effort after PC sales declined as consumers shifted to delay replacing machines and spend money instead on smartphones and tablet computers. 

The Palo Alto, California-based company has been overhauling its product line and pushing into more profitable niches in business software, data analysis and storage and technology consulting. It is also in the process of cutting nearly 30,000 jobs and trimming other expenses to help overpower declines in revenue.

 

 

 

 

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Wed, 10 Jul 2013 09:07:00 -0400 https://www.proactiveinvestors.com/companies/news/96134/hp-headed-for-12-month-high-after-citi-upgrade-45904.html
<![CDATA[News - HP tops on the bottom line in Q2 ]]> https://www.proactiveinvestors.com/companies/news/95116/hp-tops-on-the-bottom-line-in-q2-44152.html Shares of Hewlett-Packard Company (NYSE: HPQ) are soaring in after-hours trading after the company topped expectations in the second quarter.

HP's earnings dropped 31 per cent to $0.55 per share from the same prior-year period. After adjusting for one-time items, earnings fell 11 per cent to $0.87 per share, six cents ahead of analyst expectations. The results were also ahead of the company's second-quarter guidance of $0.80 to $0.82 per share.

On the top line, the computer maker's net revenue dropped 10 per cent to $27.6 billion, slightly below the analyst consensus of $28.1 billion.

As speculated, sales of personal computers, HP's largest business segment, were a weak spot in the quarter, falling 20 per cent year-over-year. Printing revenue declined one per cent, rescued in part by strong operating margins. 

"I am encouraged by our performance in the second quarter, and I feel good about the rest of the year," said president and chief executive officer Meg Whitman in a company statement. "As I have said many times before, this is a multi-year journey. We have a long way to go, but we are on track to deliver on our fiscal 2013 non-GAAP diluted earnings per share outlook."

That outlook did not change. HP predicts adjusted full-year net income to be in a $3.50 to $3.60 per share range. The Palo-Alto, California-based company expects adjusted earnings in the third quarter to be in the range of $0.84 to $0.87 per share, compared to the mean estimate of $0.84 per share. 

Whitman's words allude to HP's ongoing transition, amid a consumer shift away from personal computers and laptops to more on-the-go friendly devices such as smartphones and tablets. 

On top of that, the company is moving ahead much leaner, both in its offices and on its balance sheet: billion-dollar write-offs of disappointing acquisitions and rounds of layoffs over the past year were the major financial landscaping measures.  

Some analysts -- and, if Whitman's words can be interpreted, HP, too -- believe there's still some volatility ahead. But it's not all doom and gloom. Morningstar analyst Grady Burkett praised management in an April note. "Meg Whitman and senior management have done a good job over the past several quarters of setting and achieving reasonable performance targets, controlling expenses, and holding to their commitment of reducing net debt."

On that front, HP says it improved its net debt position by $1.8 billion, which it says is "the fifth consecutive quarterly reduction of over $1 billion."

Shares were trading 12.67 per cent higher to $23.92 as of 4:52 pm ET. They have bounced more than 80 per cent from a November low of $11.71.

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Wed, 22 May 2013 17:06:00 -0400 https://www.proactiveinvestors.com/companies/news/95116/hp-tops-on-the-bottom-line-in-q2-44152.html
<![CDATA[News - HP edges up ahead of quarterly results ]]> https://www.proactiveinvestors.com/companies/news/95114/hp-edges-up-ahead-of-quarterly-results-44149.html  

Hewlett-Packard Co. (NYSE:HPQ), a U.S. computer maker, is expected to report a drop-off in profit and sales in the fiscal second-quarter when it announces its earnings results after the closing bell on Wednesday.

Analysts expect quarterly earnings of 81 cents a share on revenue of $28.02 billion. The company had earned 98 cents a share in the year-earlier period.

The shares gained 0.5 percent to $21.21 before the closing bell on Wednesday, snapping three days of losses. The stock has gained approximately 49 percent so far this year, compared with a gain of 14 percent by the Nasdaq Composite (INDEXNASDAQ:.IXIC).

HP suffers from a decline in personal-computer sales as more technology spending shifts to smart-phones and tablet computers, which has caused HP's revenue to retreat from the previous year in six consecutive quarters. To offset the drop in PC sales, the company has cut about 15,300 jobs in the past year and is still planning to remove about 14,000 more positions.

The stock has 21 "hold", 7 "underperform", 2 "sell", 2 "buy" and 2 "strong buy" recommendations from analysts.

 

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Wed, 22 May 2013 15:49:00 -0400 https://www.proactiveinvestors.com/companies/news/95114/hp-edges-up-ahead-of-quarterly-results-44149.html
<![CDATA[News - HP shares fall in the wake of board shake-up ]]> https://www.proactiveinvestors.com/companies/news/94085/hp-shares-fall-in-the-wake-of-board-shake-up-42385.html  

Hewlett-Packard Co. (NYSE:HPQ) fell 1.43 percent in early trading on Friday after the company said chairman Ray Lane is stepping down and two other board members are leaving, in the world’s largest computer maker's latest board shake-up.

The shares declined for the fourth day in five, losing 1.8 percent to $21.91 at 9:44 a.m. in New York.

Lane, who will remain as a director, has come under fire from shareholders for his role in the acquisition of software maker Autonomy Plc. He has been the company's chairman since November 2010.

"After reflecting on the stockholder vote last month, I've decided to step down as executive chairman to reduce any distraction from HP's ongoing turnaround," HP quoted Lane as saying in a statement on Thursday.

Investors have criticized the company for paying $11 billion for Autonomy and for failing to conduct proper due diligence. HP eventually took a multi-billion dollar writedown on the asset's value.

Now director Ralph Whitworth will take over as interim chairman.  Whitworth is a shareholder activist who has been on the board for less than 18 months. Whitworth's firm owns 34.5 million HP shares. He hinted the board would be fixed under questioning from testy shareholders during the company's March 20 annual meeting.

Four directors left HP in early 2011 following the ouster of former CEO Mark Hurd in 2010. In late 2011, Whitworth joined the board and director Meg Whitman became CEO.

Palo Alto, California-based HP is also looking for two to three new board members, it said in the statement.

HP suffers from a decline in PC sales as more technology spending shifts to smartphones and tablet computers, which has caused HP's revenue to retreat from the previous year in six consecutive quarters. To offset the drop in PC sales, Whitman has cut about 15,300 jobs in the past year and is still planning to remove about 14,000 more positions.

HP's problems have reduced the company's market value in half in less than three years, wiping out $45 billion in shareholder wealth.  The stock gained approximately 53 percent this year through Thursday.

The stock's current recommendation consensus is "hold" among 33 analysts.

 

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Fri, 05 Apr 2013 09:53:00 -0400 https://www.proactiveinvestors.com/companies/news/94085/hp-shares-fall-in-the-wake-of-board-shake-up-42385.html
<![CDATA[News - Hewlett-Packard shares rally as Q1 results, Q2 outlook top views ]]> https://www.proactiveinvestors.com/companies/news/93216/hewlett-packard-shares-rally-as-q1-results-q2-outlook-top-views--40908.html  

Shares of Hewlett-Packard Co. (HP) (NYSE:HPQ) shot up over five per cent in premarket trade Friday, as its first-quarter results came in ahead of expectations and its second quarter outlook also topped views.

HP’s shares were lately up 5.32 per cent, trading at $18.01.

For the quarter that ended January 31, net earnings were $1.2 billion or 63 cents per diluted share, down from $1.5 billion or 73 cents per diluted share a year earlier, but above its previously provided outlook of 34 to 37 cents per share.

Adjusted for restructuring and acquisition-related charges, net earnings were $1.6 billion or 82 cents per diluted share, above its previous guidance of 68 to 71 cents per share.

Revenue fell six per cent to $28.4 billion, from $30 billion a year earlier.

Analysts on average had expected per share earnings of 71 cents on $27.8 billion in revenue, according to Thomson Reuters.

"We beat our non-GAAP diluted earnings per share (EPS) outlook for the quarter by 11 cents per share, driven by improved execution, improvement in our channel and go-to-market efforts and the impact of the restructuring program we announced in May 2012," said president and CEO Meg Whitman. 

"While there's still a lot of work to do to generate the kind of growth we want to see, our turnaround is starting to gain traction as a result of the actions we took in 2012 to lay the foundation for HP's future."

HP said that personal systems revenue was down eight per cent year-over-year with an operating margin of 2.7 per cent. Total units were down five per cent with desktop units up 10 per cent and notebook units down 14 per cent.

The tech company’s printing unit posted a 15-per-cent drop in revenue, with an operating margin of 16.1 per cent. 

Enterprise group revenue fell four per cent in the quarter, with a 15.5 per cent operating margin, while the enterprise services unit saw revenue decline seven per cent with a 1.3-per-cent operating margin. 

Software revenue fell two per cent, with a 17.0-per-cent operating margin, while HP’s financial services unit saw a one-per-cent increase in revenue with a 10.6-per-cent operating margin.

For the second quarter, HP said it expects adjusted diluted earnings per share in the range of 80 to 82 cents, topping analyst views for a profit of 77 cents. 

For the full year 2013, the company forecasts adjusted profit between $3.40 to $3.60, in line with its previously stated outlook. 

"Our primary focus is to deliver on the full year outlook, and I feel good about the rest of the year," added Whitman. 

"We'll be bringing a number of new programs and disruptive innovations to market in the coming quarters, and we expect the benefits from our restructuring will accelerate through fiscal 2013."

 

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Fri, 22 Feb 2013 09:03:00 -0500 https://www.proactiveinvestors.com/companies/news/93216/hewlett-packard-shares-rally-as-q1-results-q2-outlook-top-views--40908.html
<![CDATA[News - Hewlett-Packard shares rise on Icahn speculation ]]> https://www.proactiveinvestors.com/companies/news/91818/hewlett-packard-shares-rise-on-icahn-speculation--38414.html

Shares of Hewlett-Packard (NYSE:HPQ) jumped Monday on Twitter speculation that investor Carl Icahn was building a position in the struggling tech giant. 

Shares in the tech giant were lately up 3.2 per cent to $14.25 in early afternoon trading. Its stock is down 18 per cent in the last 3 months.

The rumours follow the company's decline in share price last month after it announced it would record a $9 billion asset impairment charge related to its $11 billion acquisition of Autonomy Corp in 2011. 

In late November, the company also accused previous management of fraudulent accounting and a “wilful effort” to mislead investors and potential buyers.

HP took a US$8.8bn charge related to software group Autonomy in its latest quarterly figures, which tipped it into a loss of US$6.9bn.

In a statement the US firm added: “HP is extremely disappointed to find that some former members of Autonomy’s management team used accounting improprieties, misrepresentations and disclosure failures to inflate the underlying financial metrics of the company, prior to Autonomy’s acquisition by HP.

“These efforts appear to have been a wilful effort to mislead investors and potential buyers, and severely impacted HP management’s ability to fairly value Autonomy at the time of the deal.”

Hewlett paid US$10.2 bln for Cambridge-based Autonomy in 2011 but has written off almost 90% of that price in a little over a year. The deal was widely criticized by many technology analysts as too expensive, given that the software company had never made more than $1 billion in annual revenue.

The two people responsible for the Autonomy deal - former CEO Leo Apotheker and former chief strategy officer Shane Robison - are now gone from the company.

In the latest quarter, personal systems revenue was also down 14 per cent year-on-year as the number of PCs and laptops its sold was down 12 per cent. Printing revenue declined 5 per cent as the number of printers it sold was down 20 per cent.

Enterprise servers, storage and networking revenue declined 9 per cent while software revenue grew 14 per cent year over year.

Looking ahead, HP said it sees full-year earnings per share of $3.40 to $3.60, in line with prior guidance, but its first-quarter outlook was lowered to 34 cents to 37 cents per share, well below expectations.

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Mon, 10 Dec 2012 12:50:00 -0500 https://www.proactiveinvestors.com/companies/news/91818/hewlett-packard-shares-rise-on-icahn-speculation--38414.html
<![CDATA[News - US stocks open up on Black Friday after German confidence data ]]> https://www.proactiveinvestors.com/companies/news/91437/us-stocks-open-up-on-black-friday-after-german-confidence-data-37725.html

US markets opened higher on Black Friday as investors were cheered by economic data from Germany and shoppers set out to begin their traditional spending spree.

Markets were closed yesterday for Thanksgiving and are open only until 1pm eastern time.

Computing groups were in focus with the giant Hewlett Packard up 1.96%. Microsoft shares also rose 0.90 per cent.

Elsewhere, Blackberry phone maker Research In Motion surged 11% after jumping 18% in Toronto yesterday, when the market was closed.

Meanwhile, Best Buy Co increased 2.7 percent as retailers hold Black Friday sales.

Today, known as Black Friday, is the traditional start to the shopping season in the US and investors are keen to see how consumers behave in the next few weeks.

The Dow Jones Industrial Average was up nearly half a per cent, or 60 points, in early trade, to stand at 12,896.93.

The S&P 500 index was up 5.47 points, at 1,396.50, while the NASDAQ composite index was up 19.16 points, at 2,941.72.  

Sentiment was boosted today after the IFO Institute’s widely followed gauge of German business confidence increased this month (November) to the 101.4 point level, compared to 100 the previous month.

Notably, this was the first improvement after six successive months of decline.

The data led to a strengthened Euro this morning, which reached a three-week high at $1.2911. 

No economic reports are due out today.

Meanwhile, back in the UK, when the EU budget for the next seven years were still being discussed in Brussels, it was High Street stalwart Marks & Spencer (LON:MKS) which was one of the top risers on the FTSE 100.

Shares in the retailer, which is undergoing a restructuring, rose 1.03% to 381.9 pence today.

It comes after it emerged that the group has hired a new supply chain director in the shape of Dirk Lembregts, while Darrell Stein, the director of IT and logistics, is splitting his role to become director of IT - with effect from January next year.

Home improvements firm and B&Q owner Kingfisher (LON:KGF) was top of the gainers on the blue chip exchange, with its shares up 1.48% at 281.10 pence.

Mining giant Xstrata (LON:XTA) shares were among the top risers as the tie-up between it and Glencore (LON:GLEN) is progressing.

Swiss bank UBS in a note hinted the deal might struggle to overcome the final hurdle from Chinese lawmakers.

However, it sees Glenstrata as an attractive stock to buy with earnings momentum and growth.

Glencore (LON:GLEN) shares were also up 1.42% on the day.

Overall, the UK index of leading shares was up five points, or 0.09%, to stand at 5,796.

Sentiment among investors is buoyed amid hopes that there might be final clarity on the Greek debt problem and better than expected German IFO numbers.

Reports are emerging that the IMF will move from its original insistence that Greece’s debt to GDP (gross domestic product) ratio must be 120% of GDP by 2020, and moved to 124%, which would be a significant climb-down.

The junior market also showed gains today with the FTSE AIM 100 up 8.56 points, to stand at 3114.76.

Blinkx (LON:BLNX) shares topped the board, as they stood up 7.1%, to stand at 71.75 pence. Chariot Oil & Gas (LON:CHAR) shares were up 1.9%, to stand at 27.50 pence.

Among the small caps, The Real Good Food Company (LON:RGD) shares rose 0.57% to stand at 43.75p. Advanced Computer Software (LON:  ASW) was also up 1.57% to stand at 64.75 pence a share.

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Fri, 23 Nov 2012 10:17:00 -0500 https://www.proactiveinvestors.com/companies/news/91437/us-stocks-open-up-on-black-friday-after-german-confidence-data-37725.html
<![CDATA[News - UPDATE: FTSE 100 rises as Chinese economy picks up ]]> https://www.proactiveinvestors.com/companies/news/91418/update-ftse-100-rises-as-chinese-economy-picks-up-37669.html ---Adds detail ---

In America, as flagged up yesterday, US markets are closed for the Thanksgiving holiday, and will be open for a half day tomorrow.

However, in corporate matters, the Hewlett-Packard (NYSE:HPQ) /Autonomy affair has taken another turn as software entrepreneur Mike Lynch admitted having used some of the practices that led the US company to level charges of accounting irregularities.

On Tuesday this week, H-P cried foul after taking a huge write-down at the recent UK acquisition of Cambridge-based Autonomy, where it took a US$8.8 bn charge in its latest quarterly figures, tipping it into a loss of US$6.9 bn.

It put the blame firmly on Autonomy's previous management, which it accused of fraudulent accounting and a ‘wilful effort’ to mislead investors and potential buyers.

Lynch, however, has denied that Autonomy used illegal accounting methods and said the write-downs taken by H-P were unjustifiable.

It is reported, however, that Lynch, conceded one of H-P’s main charges in an interview yesterday.

Lynch admitted that his company had sold computer hardware at a loss to some of its customers and treated part of the cost of these sales as a marketing expense in its accounts.

Hewlett-Packard paid US$10.2 bn for Autonomy in 2011 but has written off almost 90% of that price in a little over a year.

The US company said more than $5 billion of the impairment charge was linked to serious accounting improprieties, misrepresentation and disclosure failures discovered by an internal investigation by H-P and forensic review into Autonomy’s accounting practices.

Meanwhile, in the UK, the top flight share index continued its revival on Thursday after positive manufacturing data from China gave investors a boost.

A report by HSBC suggested China’s manufacturing activity grew in November, a sign that its economy may be picking up.

The bank’s purchasing managers index (PMI) lifted to 50.4, above the crucial 50 mark, which is the level at which contraction becomes expansion.

It has been a worrying time for the emerging global superpower recently after a slowdown in demand from its main markets – the US, Eurozone and Japan.

November is the first time in over a year that China’s PMI has passed the 50 and therefore expanded.

The news cheered investors today, leading the FTSE 100 37 points or 0.65% higher at 5,789.

News closer to home was not so rosy. Markit’s Eurozone’s PMI, by contrast, was little changed and still contracting at 45.7 in November from 45.8 the month before.

The survey also warned of a drop of half a per cent in gross domestic product (GDP) in the fourth quarter.

Also in focus today is the EU summit in Brussels as European leaders meet up to chew the fat over the EU budget.

EU negotiators are thought to be close to securing the British and German backing needed to spend almost €1 trillion over the next seven years.

SABMiller was the top riser on the Footsie, climbing 6% to 2,793p after beating analyst estimates for the first half of the year.

The beer company, behind famous lager brands such as Peroni and Groslch, saw organic revenues worldwide grow by 8%, while adjusted pre-tax profits were 12% higher.

It was also boosted by the acquisition of Australian favourite Foster’s, which helped offset slowing growth in some emerging markets.

Tracking it north were metals and mining companies, helped up by the positive buzz from China.

Steelmaker Evraz (LON:EVR) lifted 4.8%, Johnson Matthey rose 4.2% and Glencore was up 2.7% in trading today, while miners Xstrata (LON:XTA), Vedanta (LON:VED) and Anglo American (LON:AAL) climbed 2.7%, 2.1% and 2.4% respectively.

Investors with a fancy for smaller stocks saw Man Group (LON:MAN) climb 7.4%, while construction firm Redrow (LON:RDW) lifted 3.5%.

Leyshon Resources (LON:LRL) made the most gains today as the AIM-listed shale gas company kept investors waiting on drill results as its Australian shares were suspended from trading.

The China-focused firm leapt 84% in London after it revealed it expects to make an announcement prior to the restart of trading in Australia on November 26.

A three well campaign is currently underway in the prolific Ordos basin, with the first two wells originally projected to be completed in December.

Drilling of the third well does not start until next year.

Meanwhile, Strategic Minerals (LON:SML) jumped 24% as it confirmed it had hit full production from the Cobre tailings deposit in New Mexico and completed its first shipment to Glencore (LON:GLEN).

James Fyfe, executive chairman, described it as a “highly important milestone” that marked the end of the group’s development stage.

Strategic will use cash flow generated from Cobre to fund its Iron Glen magnetite project in Queensland, Australia. It has other early stage projects in Australia, though in September these were under review.

Fastnet Oil & Gas (LON:FAST) lost 13% after it unveiled a placing of 68mn new shares at 22p each to raise around £15 mln to execute its drilling programme off the coast of Morocco.

Meanwhile, chief executive of mine shaft contractor Shaft Sinkers (LON:SHFT) Alon Davidov bought 78,554 shares in the firm at 38p for around £28,850 and now has a beneficial interest in 0.17% of the capital.

Elsewhere, StatPro (LON:SOG) boss Justin Wheatley now owns around 11% of the firm's capital after transactions yesterday, the company revealed.

 

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Thu, 22 Nov 2012 08:54:00 -0500 https://www.proactiveinvestors.com/companies/news/91418/update-ftse-100-rises-as-chinese-economy-picks-up-37669.html
<![CDATA[News - Hewlett-Packard Q4 hit on Autonomy accounting fraud ]]> https://www.proactiveinvestors.com/companies/news/91334/hewlett-packard-q4-hit-on-autonomy-accounting-fraud-37532.html Hewlett-Packard Co's (HP)(NYSE:HPQ) fourth-quarter sales fell short of expectations as its share of the PC market shrank and sales of its printers declined, amid an $8.8 billion non-cash charge related to serious accounting improprieties at its Autonomy business, which it acquired in 2011. 

For the fiscal fourth quarter ended October 31, net revenue fell 6.7 per cent to $29.96 billion from $32.12 billion a year earlier.

Analysts on average had expected fourth-quarter revenue of $30.43 billion, according to Thomson Reuters.

Fourth-quarter net loss narrowed to $6.85 billion, or loss of $3.49 per share, from a loss of $8.86 billion, or loss of $4.49 per share, a year-ago. 

Adjusted profit at the company totaled $1.16 a share in the latest quarter. Wall Street analysts expected the tech firm to earn $1.14 per share on an adjusted basis.

"...Fiscal 2012 was the first year in a multiyear journey to turn HP around," said HP president and CEO Meg Whitman. 

"We're starting to see progress in key areas, such as new product releases and customer wins. We're particularly pleased that in Q4, we were able to improve our balance sheet, generating $4.1 billion in operating cash flow, and we returned $384 million to shareholders in the form of share repurchases and dividends."

The company recorded a fourth-quarter non-cash charge of $8.8 billion related to its Autonomy business due to to "serious accounting improprieties, disclosure failures and outright misrepresentations." HP said the accounting problems occurred prior to its acquisition of Autonomy. 

HP bought Autonomy, which specializes in database search and other enterprise software technologies, for more than $10 billion in cash a year ago. The deal was widely criticized by many technology analysts as too expensive, given that the software company had never made more than $1 billion in annual revenue.

The two people responsible for the Autonomy deal - former CEO Leo Apotheker and former chief strategy officer Shane Robison - are now gone from the company.

HP said that personal systems revenue was down 14 per cent year-on-year as the number of PCs and laptops its sold was down 12 per cent. Printing revenue declined 5 per cent as the number of printers it sold was down 20 per cent.

Enterprise servers, storage and networking revenue declined 9 per cent while software revenue grew 14 per cent year over year.

Looking ahead, HP said it sees full-year earnings per share of $3.40 to $3.60, in line with prior guidance, but its first-quarter outlook was lowered to 34 cents to 37 cents per share, well below expectations.

Last week, HP's rival Dell (NYSE:Dell) announced substantial drops in sales and profit in its past quarter. The company missed Wall Street's forecasts, despite a low bar set by analysts. Both companies have struggled to shift to the changing trends in technology.

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Tue, 20 Nov 2012 08:30:00 -0500 https://www.proactiveinvestors.com/companies/news/91334/hewlett-packard-q4-hit-on-autonomy-accounting-fraud-37532.html
<![CDATA[News - Hewlett-Packard's Whitman cites management turnover for slow progress ]]> https://www.proactiveinvestors.com/companies/news/90116/hewlett-packards-whitman-cites-management-turnover-for-slow-progress-35524.html

Hewlett-Packard (NYSE:HPQ) CEO Chief Executive Meg Whitman Wednesday blamed executive turnover in prior years for dragging out the turnaround of the Silicon Valley company.

Whitman, who became HP's third CEO in as many years after taking the helm from Leo Apotheker, is trying to revitalize the former industry icon via layoffs, cost cuts, and expansion into areas with longer-term potential such as providing enterprise computing services.

Apotheker's 11-month tenure at the helm of HP was marked by an acceleration of departures from various divisions, such as networking chief Marius Haas, as he brought in former co-workers from Apotheker's former company, Germany's SAP AG.

"My belief is that the single biggest challenge facing Hewlett-Packard has been changes in CEOs and executive leadership, which has caused multiple inconsistent strategic choices and frankly some significant executional miscues," Whitman told investors.

"This is important because as a result it is going to take longer to right this ship than any of us would like," she added.

The largest U.S. technology company by revenue is trying to transform itself into a major enterprise computing provider, while cutting costs to boost the bottom line.

Hewlett-Packard is laying off 29,000 employees over the next two years, has written off $10.8 billion that was mostly related to the writedown of its EDS services business, and its business continues to be hit by a slowing in corporate spending and personal computer demand worldwide.

Whitman said she would work to cut the number of product offerings and cut costs as HP tries to recover in a worsening macro-economic environment. She has said it will take five years for the turnaround to be effective.

"All of this is fixable but it is going to take some time," Whitman told investors.

The company's recovery will start becoming visible in fiscal 2014 with all of the current investments paying off, she added.

Earlier this week, Hewlett-Packard unveiled plans for a new tablet computer. The ElitePad 900 is slated to be released in the U.S. in January 2013.

HP's ElitePad 900 will be an 11-inch, 1.5 pound device, complete with 3G/4G connectivity. The 1.5-pound tablet is comprised of CNC-machined aluminum and Gorilla Glass. The display will feature a screen resolution of 1,280 X 800 pixels. 

There will also be a front-facing 1,080p camera and a rear-facing 8-megapixel camera.

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Wed, 03 Oct 2012 13:25:00 -0400 https://www.proactiveinvestors.com/companies/news/90116/hewlett-packards-whitman-cites-management-turnover-for-slow-progress-35524.html
<![CDATA[News - Hewlett-Packard ups headcount reduction figures ]]> https://www.proactiveinvestors.com/companies/news/89446/hewlett-packard-ups-headcount-reduction-figures-34505.html

Hewlett-Packard (NYSE:HPQ) increased the number of jobs the U.S. computer maker plans to cut by 29,000 in the next two years, as it seeks to simplify its business. 

The Palo Alto, California-based tech company first reported a multi-year restructuring plan in May. Its original plan called for layoffs of 27,000 workers, or about eight per cent of its workforce.

HP's revised headcount will see a portion of workers exit the company as part of a voluntary early retirement program. According to the regulatory filing, a majority of the early retirement program will be funded through HP's U.S. pension plans.

Meanwhile, it expects to book $3.7 billion in restructuring charges, up from its prior view of $3.5 billion. Of that, HP estimates $3.3 billion will relate to workforce reductions and the early retirement program.

The company also expects to book a $400 million charge relating to its data centre and real estate consolidation.  

Shares rose 1.69 per cent to reach $17.58 apiece in New York. 

Both HP and Dell Inc. (NASDAQ:DELL) are grappling with a weakened computer market, as consumers opt for mobile devices like tablets and smartphones.

Late last month, the company reported the biggest quarterly loss in its 73-year history. 

The company swung to a net loss of $8.83 billion or $4.49 per share, compared with a year-previous net income of $1.92 billion or 93 cents a share. 

Revenue edged down five per cent to $29.6 billion from $31.1 billion.

Analysts polled by Bloomberg expected a per-share profit of $1, on sales of $30.8 billion for the period ended July 31.

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Mon, 10 Sep 2012 13:23:00 -0400 https://www.proactiveinvestors.com/companies/news/89446/hewlett-packard-ups-headcount-reduction-figures-34505.html
<![CDATA[News - Hewlett-Packard shares fall over 3% ahead of Q3 earnings report ]]> https://www.proactiveinvestors.com/companies/news/88941/hewlett-packard-shares-fall-over-3-ahead-of-q3-earnings-report-33693.html

Computer and printer maker Hewlett-Packard’s (HP) (NYSE:HPQ) shares were down Wednesday afternoon, ahead of the company’s third quarter earnings results – due out after the bell.

The PC giant’s shares fell 3.71 per cent as at about 1:30 p.m. ET, trading at $19.19.

Analysts are looking for HP to earn 98 cents a share on revenue of $30.1 billion, according to Thomson Reuters, down from a profit of $1.10 a share on revenue of $31.2 billion in the same period a year ago.

In early August, the company said it expects to earn approximately $1.00 per share, up from a previous guidance of 94 to 97 cents. HP did not note revenue expectations for the quarter.

Analysts, however, are taking that as a sign that the company will report a decline in revenue as a result of massive charges the company said it would absorb to account for the acquisition of technology consulting firm Electronic Data Systems and the initial costs of a cost cutting program that will see HP slash about 27,000 jobs.

Revenues are also expected to be hurt by the ever-increasing popularity of smartphones and tablets, which are leading to slumping sales of personal computers.

HP is not alone, as other computer makers are also struggling to sell computers as more consumers and businesses embrace products like Apple Inc.'s (NASDAQ:AAPL) iPad. Speculations have indicated that HP and others are hoping for a boost when Microsoft (NASDAQ:MSFT) launches its new version of the Windows operating system in late October.

Overall the company’s stock has suffered this year, down $4.38 from $23.63 six months ago and almost $6 or 14 per cent from a year ago.

This is not great news for HP’s CEO Meg Whitman, who has been on the job for a year and has yet to convince analysts and traders that she has the solution to making the company profitable again.

On the other hand, Whitman’s effort to cut HP’s annual business expenses has not been in vain and is one of the reasons that the company hasn’t suffered larger losses.

HP is the one of the world's largest maker of PCs and computer printers, as well as one of the technology industry's biggest employers. the company has lately tried to improve profitability by expanding its business to include more consulting services, software and high-end servers — all of which are more profitable than PCs.

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Wed, 22 Aug 2012 14:17:00 -0400 https://www.proactiveinvestors.com/companies/news/88941/hewlett-packard-shares-fall-over-3-ahead-of-q3-earnings-report-33693.html
<![CDATA[News - HP raises Q3 adjusted profit, expects massive pre-tax charge ]]> https://www.proactiveinvestors.com/companies/news/88514/hp-raises-q3-adjusted-profit-expects-massive-pre-tax-charge-33019.html Hewlett-Packard Co. (NYSE:HPQ) expects to post higher per-share adjusted profit in third quarter, despite a massive restructuring and write-down charge.

The Palo Alto, California-based company’s stock rose 2.37 per cent hitting $19.41 apiece on the New York Stock Exchange.

The software and enterprise business company upped its third quarter adjusted per-share forecast to $1. That is up from a prior view of between 94 to 97 cents. 

HP expects to book a non-cash pre-tax charge valued at $8 billion due to the write down of its services business.

The company does not see the impairment charge to result in “future cash expenditures or otherwise affect the ongoing business or financial performance” of its services segment.

Meanwhile, the personal computer maker also anticipates booking a larger pre-tax charge of roughly $1.5 to $1.7 billion due to restructuring. This is up from its prior view of $1 billion.

HP said in May it planned to cut about 27,000 jobs, or eight per cent of its workforce, over many years in an effort to save up to $3.5 billion a year.

In addition to the third quarter outlook, the tech company also announced today John Visentin, head of Enterprise Services, is leaving HP to pursue other interests.

Visentin will be replaced on an interim basis by Mike Nefkens, head of Enterprise Services in Europe, the Middle East and Africa.

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Wed, 08 Aug 2012 15:35:00 -0400 https://www.proactiveinvestors.com/companies/news/88514/hp-raises-q3-adjusted-profit-expects-massive-pre-tax-charge-33019.html
<![CDATA[News - HP to lay off 8% of staff, Q2 profit falls 31% ]]> https://www.proactiveinvestors.com/companies/news/86436/hp-to-lay-off-8-of-staff-q2-profit-falls-31-29534.html Computer and printer maker Hewlett-Packard (NYSE:HPQ) reported fiscal second quarter profit of $0.98 per share, seven cents above estimates.

However, the company issued a third quarter outlook below forecasts, but its full year outlook was above analyst estimates. As expected, it detailed its restructuring plans, saying 27,000 employees will be laid off - roughly 8 percent of its staff.

For its fiscal second-quarter. HP reported net income of $1.59 billion, or 80 cents per share, compared with $2.3 billion, or $1.05 per share a year earlier. Revenue of $30.69 billion was down 3 percent compared with the same period last year.

Excluding items, HP earned 98 cents, compared with analysts' average estimate of 91 cents, according to Thomson Reuters.

"We are making progress in our multi-year effort to make HP simpler, more efficient and better for customers, employees, and shareholders," said HP's president and chief executive officer Meg Whitman.

"This quarter we exceeded our previously provided outlook and are executing against our strategy, but we still have a lot of work to do."

The company said the job cuts would be made mainly through early retirement and would generate annual savings of $3 billion to $3.5 billion at the end of the  2014 fiscal year, when the layoffs are expected to the completed. A third of the staffing cuts would be in the United States.

The company will take a pretax charge of $1.7 billion in fiscal 2012 related to the layoffs.

HP said it plans to boost spending on research and development, especially in printing and PCs, with the savings from the cost cuts.

The company has been trying to move past the internal upheaval that marked 2011, including the departure of two chief executives.

HP's Whitman, a veteran Silicon Valley executive, took over HP last September and has since been trying to turn the company around.

HP's acquisition of U.K. software company Autonomy for over $11 billion is facing challenges, and results in the division fell short of HP's expectations.

Results from HP's other segments were also weak.

Sales from the personal systems group were flat with a decline in sales to consumers offsetting revenue from commercial clients.

Revenue from its bread-and-better printing group, which is being merged with the PC group, fell 10 percent after weak consumer and corporate demand.

Sales of enterprise servers, storage and networking equipment fell 6 percent.

HP's dividend payment of $0.12 per share in the second quarter resulted in cash usage of $251 million. HP also utilized $350
million of cash during the quarter to repurchase approximately 13 million shares of common stock in the open market.

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Thu, 24 May 2012 07:49:00 -0400 https://www.proactiveinvestors.com/companies/news/86436/hp-to-lay-off-8-of-staff-q2-profit-falls-31-29534.html
<![CDATA[News - HP to merge printing, personal systems business segments ]]> https://www.proactiveinvestors.com/companies/news/84740/hp-to-merge-printing-personal-systems-business-segments-26646.html Hewlett-Packard (HP)(NYSE:HPQ) said Wednesday it will merge its imaging and printing group (IPG) with its personal systems group (PSG) in an effort to streamline its operations.

The information technology giant said the IPG and PSG will form the Printing and Personal Systems Group, which will be led by PSG executive VP, Todd Bradley.

Executive VP at IPG, Vyomesh Joshi, will retire after 31 years at HP. Joshi has grown revenues for the business by 37 percent to
$26 million, while doubling operating profits to about $4.0 million.

HP's president and CEO, Meg Whitman said: "This combination will bring together two businesses where HP has established global leadership.

"By providing the best in customer-focused innovation and operational efficiency, we believe we will create a winning scenario for customers, partners and shareholders."

HP said the combination will rationalize its go-to-market strategy, branding, supply chain, and customer support across the globe. It will lead to a better customer experience and drive innovation across personal computing and printing, it said.

The realignment is also expected to offer cost saving opportunities for the company, and accelerate its ability to pursue profitable growth and reinvestment.

Late last month, HP reported a 44 percent drop in its first quarter earnings. The world's number one computer maker also forecast a weaker second quarter profit as it struggles with poor PC and printer sales.

Revenue from HP's printing business dropped seven percent during that first quarter, and sales of servers, networking gear and
storage systems declined by 10 percent.

Revenue from services, however, grew one percent, and software sales, bolstered by the $10.3 billion acquisition of Autonomy, jumped 30 percent to $946 million. But operating income in each of HP's main units dropped compared with a year earlier.

Looking to the current, fiscal second quarter, HP said it expects non-GAAP diluted earnings of 88 to 91 cents per share, below Wall Street estimates. It reiterated its full-year non-GAAP earnings outlook of at least $4 per share.

Additionally, HP said it will also merge its Global Accounts Sales business with its newly named HP Enterprise Group. The group,
led by David Donatelli, includes Enterprise Servers, Storage, Networking and Technology Services. This merger will speed decision making, HP said, as well as boosting productivity, improving efficiency, and providing a simpler customer experience.

HP will also unify its marketing functions across all business units, allowing for more effective brand-building and marketing
activities. The company's communications division will also be unified.

Finally, HP said it will address real estate consolidation by shifting its Global Real Estate division to its Global technology and Business Processes business, from Finance.

Whitman concluded: "Ensuring we have the right organizational structure in place is a critical first step in driving improved
execution, and increasing effectiveness and efficiency.

"The result will be a faster, more streamlined, performance-driven HP that is customer focused and poised to capitalize on rapidly shifting industry trends."

In New York, shares of the Palo Alto, California-based company fell two percent to $23.50, as of 12:12 pm EDT. The company's stock has shed 8.7 percent so far this year.

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Wed, 21 Mar 2012 12:38:00 -0400 https://www.proactiveinvestors.com/companies/news/84740/hp-to-merge-printing-personal-systems-business-segments-26646.html
<![CDATA[News - Hewlett-Packard's Q1 Profit Tumbles 44% ]]> https://www.proactiveinvestors.com/companies/news/83934/hewlett-packards-q1-profit-tumbles-44-25339.html Hewlett-Packard Co's (H-P)(NYSE:HPQ) fiscal first-quarter earnings fell nearly 44 percent as the world's No. 1 computer maker forecast a weaker second-quarter profit as it struggles with weak sales of PCs and printers.

For the quarter ended January 31, H-P posted fiscal first-quarter net income of $1.5 billion, or 73 cents per share, compared with $2.6 billion, or $1.17 per share, a year ago. Revenue declined to $30 billion from $32.3 billion.

Excluding items, H-P earned 92 cents per share, above the average analyst estimate of 87 cents according to Thomson Reuters.

Revenue in the company's PC unit fell 15 percent in the fiscal first quarter, as consumers and business bought fewer computers from the company.

Consumers may wait to buy new PCs until Microsoft (NASDAQ:MSFT) releases its Windows 8 software later this year. Rival Dell Inc. (NASDAQ:DELL) earlier this week forecast lower sales for the current period amid tepid demand from consumers and governments.

A hard-drive shortage due to flooding in Thailand last year hurt the PC business and would continue to have an impact through the first half of the year. The hard-drive shortage also hurt H-P's server business.

Hewlett-Packard, Dell and other PC makers are counting on a new crop of thin-and-light laptops called ultrabooks to spur sales.

Revenue from H-P's printing business dropped 7 percent and sales of servers, networking gear and storage systems declined by 10 percent.

Revenue from services grew 1 percent, and software sales, bolstered by the $10.3 billion acquisition of Autonomy, jumped 30 percent to $946 million. But operating income in each of H-P's main units dropped compared with a year earlier.

Looking to the current, fiscal second quarter, HP said it expects non-GAAP diluted earnings of 88 to 91 cents per share, below Wall Street estimates.

It reiterated its full-year non-GAAP earnings outlook of at least $4 per share.

Meg Whitman joined H-P last year after the company had missed several quarters of Wall Street expectations and the board fired predecessor Leo Apotheker.

Since then, Whitman has tied up some of the loose ends Apotheker left behind, including keeping the company's personal-computer business, which Mr. Apotheker proposed spinning off into a stand-alone company.

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Thu, 23 Feb 2012 07:53:00 -0500 https://www.proactiveinvestors.com/companies/news/83934/hewlett-packards-q1-profit-tumbles-44-25339.html
<![CDATA[News - Hewlett-Packard Q4 earnings drop, shares down 2% on weak outlook ]]> https://www.proactiveinvestors.com/companies/news/81633/hewlett-packard-q4-earnings-drop-shares-down-2-on-weak-outlook-21461.html Printer and PC maker Hewlett-Packard's (NYSE:HPQ) posted a drop in fourth-quarter earnings and issued a cautious outlook for the full-year late Monday, sending shares down Tuesday.

For the quarter that ended October 31, net profit fell to $200 million, or 12 cents per share, from $2.5 billion, or $1.10 per share, a year earlier.

Revenue fell three percent to $32.1 billion, from $33.3 billion a year earlier.

The quarter, which was CEO Meg Whitman's first since she took over in September, includes $2.1 billion in after-tax costs for closing its Web OS mobile software business.

HP's executive vice president and chief financial officer, Cathie Lesjak, said: "While FY11 proved to be a challenging year, we grew non-GAAP EPS 7 percent and generated $12.6 billion in cash flow from operations.

"We're remaining cautious heading into FY12 but are focused on delivering our earnings outlook and driving shareholder value."

The fourth quarter was a turbulent period for the company, which reversed a decision to sell it PC-making arm and saw former CEO Leo Apotheker replaced by Whitman.

For the current first quarter, HP projected earnings per share, excluding one-time charges, between 83 and 86 cents, well below the $1.17 analysts expected.

For the full year 2012, HP expects earnings, excluding items, of at least $4 a share; analysts on average had expected $4.90 per share.

Shares were down 2.4 percent Tuesday afternoon to $26.20.

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Tue, 22 Nov 2011 13:41:00 -0500 https://www.proactiveinvestors.com/companies/news/81633/hewlett-packard-q4-earnings-drop-shares-down-2-on-weak-outlook-21461.html
<![CDATA[News - HP shares tumble, to sell PC business, slashes outlook ]]> https://www.proactiveinvestors.com/companies/news/79264/hp-shares-tumble-to-sell-pc-business-slashes-outlook-17419.html After markets closed on Thursday, information technology giant Hewlett-Packard Co (HP) (NYSE:HPQ) cut its full year outlook as it gears up to sell off its PC business, causing its shares to drop.

On Thursday, HP said it is looking to spin off its declining PC business, which makes up around 30% of the company's sales. Still, the spin-off is an attempt to boost its margins, which have been suffering from the PC unit.

"We're focused on improving performance across the business," said president and CEO, Léo Apotheker.

HP cut its full year revenue outlook to a range of $127.2 to $127.6 billion, down from its previous guidance of $129 to $130 billion. It now also expects between $4.82 and $4.86 per share in adjusted earnings, down from its initial forecast of at least $5.00.

The company said its plans to discontinue its webOS business, which includes a series of smartphones and tablet computers, led to its decreased forecast.

On the New York Stock Exchange, HP's shares dropped 18.13% before the bell, but plunged more than 21% as of just after 10:00am EDT, to $23.30.

"HP is taking bold, transformative steps to position the company as a leader in the evolving information economy," Apotheker continued.

"[Yesterday's] announced plan will allow HP to drive creation of long-term shareholder value through a focus on fewer fronts, thereby improving its ability to execute, invest in innovation and drive a higher-margin business mix."

Indeed, the company also announced its plans to purchase U.K.-based business software group Autonomy Corp (LON:AU) for over £7 billion, or US $10 billion.

The all cash offer is worth £25.50 per share, or US$42.25 per share, to Autonomy’s investors, who include Mike Lynch – its chief executive officer who founded the company in Cambridge in 1996, and who now holds just over 19.8 million shares, or 8.14%.

The deal would bring more value to HP's software business, which posted $780 million in sales in the company's latest third quarter, up 20% year-over-year, as licensing and services grew 29% and 30%, respectively.

For the three months ending July 30, HP posted net income of $1.9 billion, or $0.93 per share, up 9% over $1.8 billion, or $0.75 per share, a year ago.

Adjusted for certain one-time items, including amortization, restructuring and other acquisition-related charges, profits were $2.3 billion, or $1.10 per share.

Revenues rose 1% to $31.2 billion, from $30.7 billion in the same period last year. However, when adjusted for the effects of currency, revenues dropped 2% from a year ago.

Analysts had expected earnings of $1.10 per share, on $31.3 billion in revenues.

The company's services unit had $9.1 billion in sales, up 4%, while its enterprise servers, storage and networking business had $5.4 billion, a 7% hike.

Sales from the personal systems group, or PC unit, which includes the webOS platform, dropped 3%, to $9.6 billion, while sales from the imaging and printing business fell 1% to $6.1 billion.

Overall, commercial business posted 5% revenue growth year-over-year, while the company's consumer business, within the personal systems, and imaging and printing segments, dropped 15%.

When adjusted for the effects of currency, revenue was down 2% in North America, down 5% in Europe, the Middle East and Africa, but rose 1% in the Asia Pacific.

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Fri, 19 Aug 2011 10:06:00 -0400 https://www.proactiveinvestors.com/companies/news/79264/hp-shares-tumble-to-sell-pc-business-slashes-outlook-17419.html
<![CDATA[News - HP snaps up infrastructure software giant Autonomy for $10 billion ]]> https://www.proactiveinvestors.com/companies/news/79260/hp-snaps-up-infrastructure-software-giant-autonomy-for-10-billion-17409.html

US information technology giant Hewlett-Packard (NYSE:HPQ) is to pay more than £7 billion (US$10 billion) for business software group Autonomy Corporation (LON:AU.) in a deal that has been welcomed by the UK firm’s directors.

The £7.1 billion cash offer is worth £25.50 per share to Autonomy’s investors, who include Mike Lynch – its chief executive officer who founded the company in Cambridge in 1996 and who now holds just over 19.8 million shares (8.14 per cent of the company). 

Yesterday, Autonomy’s share price closed down 129 pence at 1,429 pence each – a fall of 8.3 per cent – amid the wider market selloff. Today they opened up sharply, trading at 2,524 pence each – an increase of 76.5 per cent – by 8:12am.

Described by technology pundits as “the world’s hottest technology company”, Autonomy is a leader in infrastructure software for enterprises. Autonomy says its software helps organisations to get value out of the information by “ensuring that computers map to our world, rather than the other way around”, pointing out that human-friendly information is not naturally found in rows and columns in a database but in documents, Web pages, presentations, videos, phone conversations, e-mails and instant messages.

It is this capability to penetrate and make sense of the information stored by an organisation that HP is after as it plans to expand its own offerings in the market for enterprise information software. HP believes that Autonomy’s IDOL platform, when combined with the US firm’s own strength in enterprise software, services and infrastructure, will enable the combined business to deliver “a next-generation information platform”.

HP’s chief executive officer, Léo Apotheker, explained that the takeover of Autonomy presented the US firm with the opportunity to accelerate its strategic vision to lead a large and growing market. The UK company’s technology will help customers manage the “explosion of information”, he added.

“Together with Autonomy, we plan to reinvent how both structured and unstructured data is processed, analysed, optimised, automated and protected,” said Apotheker. “Autonomy has an attractive business model, including a strong cloud-based solution set, which is aligned with HP’s efforts to improve our portfolio mix.  We believe this bold action will squarely position HP in software and information to create the next-generation ‘Information Platform’, and thereby create significant value for our shareholders.”

 “This is a momentous day in Autonomy's history. From our foundation in 1996, we have been driven by one shared vision: to fundamentally change the IT industry by revolutionising the way people interact with information,” said Mike Lynch. “HP shares this vision and provides Autonomy with the platform to bring our world-leading technology and innovation to a truly global stage, making the shift to a future age of the information economy a reality.”

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Fri, 19 Aug 2011 07:36:00 -0400 https://www.proactiveinvestors.com/companies/news/79260/hp-snaps-up-infrastructure-software-giant-autonomy-for-10-billion-17409.html
<![CDATA[News - HP shares tumble on lower 2011 forecast, weak PC sales ]]> https://www.proactiveinvestors.com/companies/news/77619/-hp-shares-tumble-on-lower-2011-forecast-weak-pc-sales-14672.html HP (NYSE:HPQ), the world's largest technology company by revenue, saw its shares fall on Tuesday as the company again lowered its 2011 outlook, citing weak personal computer sales, the impact of the Japan quake and reduced operating profit in its services segment.

The Palo Alto, California-based company, the world's largest PC maker, reported its second fiscal quarter results a day earlier following a leaked memo from CEO Leo Apotheker yesterday, which told HP executives to cut expenses in preparation for another "tough quarter", according to reports from the Wall Street Journal.

For the three months ending April 30, the company reported net income of $2.3 billion, or $1.05 per share, compared to profits of $2.2 billion, or $0.91 per share, in the year-ago period.

Adjusted for restructuring and acquisition-related charges, as well as other items, HP posted net earnings of $1.24 per share, up 14% from the prior year quarter.

Net revenue of $31.6 billion was up 3%, or 1% when adjusted for the effects of currency, due to what it called "uneven" performance across all of its operations, with continued softness in consumer PCs across all geographies.

The company said the revenue growth was largely a result of commercial PC sales, which grew 13%, allowing HP to maintain its leadership position in the PC market, in terms of units, revenue and profit share, as businesses continued to spend on technology.

However, commercial growth was offset by a 23% decline in consumer client revenue, leading to an overall 5% fall in sales from the personal systems group.

Revenue from its core enterprise group, which includes sales from services, enterprise servers, storage and networking, as well as HP software, rose 7% to $15.3 billon.

The company said though that it expects to invest more in its services segment, specifically towards the migration to cloud computing, which is anticipated to cut into the unit's operating profit.

Revenue from outside of the US in the second quarter accounted for 66% of total HP revenue. HP saw accelerated growth in the BRIC countries (Brazil, Russia, India and China), with revenue increasing 19%.

Due to the second quarter results, HP decreased its adjusted full-year earnings guidance down to at least $5.00 per share, on revenue between $129 and $130 billion. In February, the company predicted earnings in the range of $5.20 to $5.28 per share, on revenue between $130 and $131.5 billion.

HP shares were down more than 9% on Tuesday morning, trading at $36.19 as of 11:50am EST.

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Tue, 17 May 2011 11:50:00 -0400 https://www.proactiveinvestors.com/companies/news/77619/-hp-shares-tumble-on-lower-2011-forecast-weak-pc-sales-14672.html
<![CDATA[News - Hewlett Packard shares plummet on weak forecast ]]> https://www.proactiveinvestors.com/companies/news/76403/hewlett-packard-shares-plummet-on-weak-forecast-12523.html Hewlett Packard (HP) (NYSE:HPQ) fell roughly 10% on Wednesday after the company disappointed investors with its outlook for the year, missing estimates due in large part to a consumer slump.


For the second quarter of fiscal 2011, the company projected adjusted earnings per share as high as $1.21, on revenues up to $31.6 billion. These predictions fell below analyst expectations of $1.26 earnings per share on sales of $32.6 billion.


The Palo Alto-based computer maker was down nearly 9% at $44.00 twenty minutes before market open on Wednesday.


For the full year 2011, HP cuts its sales outlook to up to $131.5 billion, again falling below the $133.1 billion analysts anticipated. Excluding one-time costs, earnings for the year are expected to fall between $5.20 to $5.28 per share - in line with estimates.


For the first quarter ending January 31, 2011, HP posted net earnings of $2.61 billion, or $1.17 per diluted share, compared to $2.25 billion in profits, or $0.93 per share, in the year ago period.


Adjusted to exclude some after-tax costs, earnings were $1.36 per share - a 27% year-over-year increase. 


Revenues climbed marginally to $32.3 billion, versus $31.18 billion in the first quarter of fiscal 2010. Analysts were projecting earnings of $1.29 per share on revenues of $33 billion.


For the first quarter, personal systems group revenue declined 1% year-over-year to $10.45 billion on a 12% decline in sales from consumer clients, partially offset by an 11% rise in sales from corporate customers. Services revenue suffered too, falling 2% to $8.61 billion from a year earlier.


In an attempt to mitigate the impact of sluggish consumer demand, HP is building up its cloud services - a way to access applications and store information through the Web. The Enterprise Servers, Storage and Networking division's revenue grew 22% in the first quarter to $5.63 billion.


"HP has a powerful portfolio, including exciting, recently announced cloud and connectivity offerings. We are focused on leveraging these strengths to extend our leadership and accelerate growth," said president and CEO Léo Apotheker. 


Sales from outside the US accounted for 65% of total HP revenue in the first quarter, with sales from the BRIC countries (Brazil, Russia, India and China) increasing 11% year-over-year.

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Wed, 23 Feb 2011 09:31:00 -0500 https://www.proactiveinvestors.com/companies/news/76403/hewlett-packard-shares-plummet-on-weak-forecast-12523.html
<![CDATA[News - HP to Acquire ArcSight for $1.5bn ]]> https://www.proactiveinvestors.com/companies/news/69089/hp-to-acquire-arcsight-for-15bn-8359.html Hewlett Packard (NYSE:HPQ) has said it will acquire security and compliance software provider ArcSight (Nasdaq:ARST) for $43.50 per share, or an enterprise value of $1.5 billion.

The deal, whose price represents a 24% premium over ArcSight's closing share price on Friday, is one of a slew of transactions as of late, as HP looks to diversify its business and expand beyond personal computers.

Earlier this month, the world`s largest technology company won the battle with Dell to acquire data storage company 3Par in a $2.4 billion deal.

As companies improve their access to applications, services and information, they are exposed to an increasing number of threats, making security of the utmost importance in today`s environment.

ArcSight helps businesses and government agencies safeguard their digital assets by analyzing data for cyber-theft, cyber-fraud, cyber-warfare and cyber-espionage, and helps companies comply with corporate and regulatory policy.

The combination of the two companes is expected to improve security with broader visibility, reduce risk and facilitate compliance at a lower cost for customers, said HP.

The acquisition, which is subject to customary closing conditions, is expected to close by the end of the calendar year.

ArcSight jumped 25% to $43.82 on the Nasdaq, as of 1:58pm ET on Monday.

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Mon, 13 Sep 2010 18:59:00 -0400 https://www.proactiveinvestors.com/companies/news/69089/hp-to-acquire-arcsight-for-15bn-8359.html
<![CDATA[News - Hewlett-Packard wins battle for 3PAR as Dell refuses to increase offer ]]> https://www.proactiveinvestors.com/companies/news/69162/hewlett-packard-wins-battle-for-3par-as-dell-refuses-to-increase-offer-8107.html Dell (NASDAQ:DELL) has bowed out of a takeover battle for 3PAR (NYSE:PAR), clearing the way for rival Hewlett-Packard (NYSE:HPQ) to acquire the data storage company for US$33 per share.


It was Dell, the third largest PC manufacturer who kicked off the battle for 3PAR, initially offering $18 per share on August 16th, but larger rival Hewlett-Packard, which is currently the largest player in the PC market, was quick to enter the fray, kicking of a  bidding war between the two companies which ended today when Dell confirmed it would not increase its latest offer of $32 per share.


Both HP and Dell were fighting for the data storage company to help build each of their cloud computing businesses, as companies all over the world look to store data over the Internet, forgoing the purchase of computer servers.


"We took a measured approach throughout the process and have decided to end these discussions," said Dave Johnson, senior vice president, corporate strategy at Dell.


A small consolidation prize for Dell will be a  $72 million break-up fee from 3PAR upon the termination of its merger agreement.


3PAR  is a provider of utility storage, a type of specialized data storage devices that are used in cloud computing. 

3PAR’s products allows organizations to choose the capacity and performance they need and pay only when it’s used.   The company’s products also help organizations reduce power and energy costs related to data storage.

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Thu, 02 Sep 2010 16:05:00 -0400 https://www.proactiveinvestors.com/companies/news/69162/hewlett-packard-wins-battle-for-3par-as-dell-refuses-to-increase-offer-8107.html
<![CDATA[News - HP hikes up earlier 3PAR offer to $1.88bn ]]> https://www.proactiveinvestors.com/companies/news/69399/hp-hikes-up-earlier-3par-offer-to-188bn-7960.html Hewlett Packard (NYSE: HPQ) has again raised its offer for data storage company 3PAR (NYSE: PAR) to $1.88 billion, topping Dell`s (Nasdaq: DELL) and its own earlier bid of $1.8 billion, after 3PAR confirmed it was accepting Dell`s $27 per share offer.

The new $30 per share offer equates to around three times the price of 3PAR before the bidding war began last week. Dell`s first offer for the company on Aug 16 was $18 per share or $1.13 billion.

Both HP and Dell are fighting hard for the data storage company to help build each of their cloud computing businesses, as companies all over the world look to store data over the Internet, forgoing the purchase of computer servers.

3PAR said earlier today that its board of directors continue to unanimously recommended Dell's $1.8 billion offer to shareholders.

Based in California, 3PAR is a global provider of utility storage built for public and private cloud computing and designed to eliminate the limitations of traditional storage arrays for utility infrastructures. Its technology helps companies to reduce power consumption and cut storage costs.

3PAR has gone up 21.6% to trade at $31.69 on the New York Stock Exchange as of 11:31am ET.

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Fri, 27 Aug 2010 16:23:00 -0400 https://www.proactiveinvestors.com/companies/news/69399/hp-hikes-up-earlier-3par-offer-to-188bn-7960.html
<![CDATA[News - Hewlett-Packard makes $1.6bn rival bid for 3PAR ]]> https://www.proactiveinvestors.com/companies/news/73900/hewlett-packard-makes-16bn-rival-bid-for-3par-7839.html Fresh from the recent resignation of its CEO Mark Hurd, Hewlett Packard (NYSE:HPQ) has submitted a $1.6 billion rival bid to acquire data storage company 3PAR Inc. (NYSE:PAR), trumping an earlier offer last week from Dell. 3PAR has surged 38.8% in pre-market trading since the release, while HP has declined nearly 1%.

The proposed transaction, which would see HP give the company $24 per share, is around 33% above the price proposed by Dell last week. At the time, Dell’s $1.15 billion bid for 3PAR, represented an 87% premium to its share price. HP`s offer is not contingent on any financing, and has already been approved by the board of directors, it said.

The addition of 3PAR is expected to accelerate HP's converged infrastructure strategy and diversify its storage solutions, said HP, particularly in the cloud and scale-out markets, as well as help 3PAR deliver its products around the world.

"Our global reach, strong routes to market and commitment to innovation uniquely position HP as the ideal fit for 3PAR," said executive vice president and general manager of enterprise servers, storage and networking at HP, Dave Donatelli.

3PAR, which was founded in 1999, makes storage products that use virtualization technology to allow companies to boost their efficiency. The company posted revenues of $194 million in its last fiscal year.

HP`s bid said it would offer terms similar to those of Dell, but would not include a termination fee. Both companies are looking to take advantage of an increasing demand from businesses for services that allow users to access data over the internet.

If the deal is approved by 3PAR`s board of directors, HP expects the transaction to close by the end of the calendar year.


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Mon, 23 Aug 2010 16:36:00 -0400 https://www.proactiveinvestors.com/companies/news/73900/hewlett-packard-makes-16bn-rival-bid-for-3par-7839.html
<![CDATA[News - HP Acquires Security Assurance Provider Fortify Software ]]> https://www.proactiveinvestors.com/companies/news/73807/hp-acquires-security-assurance-provider-fortify-software-7692.html HP (NYSE:HPQ) announced today that it has entered into a definitive agreement to acquire Fortify Software (“Fortify”), a private company that provides security assurance software.  The terms of the deal were not disclosed. 

Fortify’s software security suite, Fortify 360, automate crucial  processes of developing and deploying software applications in order to avoid the risks of security flaws. 

"Businesses operate in a world of increasing security and compliance challenges, and the applications and services that they rely on are core to the problem and the solution," said Bill Veghte, executive vice president, Software and Solutions, HP.

"With Fortify's leadership in static application security analysis combined with HP's expertise in dynamic application security analysis, organizations will have a best-in-class solution to improve the security of their applications and services."

Using Fortify’s technology, HP plans to offer a software that will integrate security assurance with the software development process.
 
HP plans to operate Fortify as a standalone company after the acquisition but will integrate Fortify with its HP Software and Solutions business over time.  Fortify’s products will be packaged as part of HP’s Business Technology Optimization application portfolio.

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Tue, 17 Aug 2010 14:23:00 -0400 https://www.proactiveinvestors.com/companies/news/73807/hp-acquires-security-assurance-provider-fortify-software-7692.html