CIMdata PLM Industry Summary Online Archive
22 August 2013
Financial News
HP shuffles top ranks, dashes 2014 growth hopes
Hewlett-Packard Co shuffled its top ranks on Wednesday, shifting any executive to a role identifying acquisition targets after a disappointing performance from the division he oversaw curtailed the No. 1 PC maker's 2014 outlook.
Meg Whitman replaced Dave Donatelli with Bill Veghte at the helm of the Enterprise Group on Wednesday, calling the unit's performance "very disappointing." That, plus a decline in PC sales as tablets and smartphones revolutionize computing, led her to backpedal from when she said in May that 2014 revenue growth was still possible. "What has changed about 2014's outlook is a couple of things - Enterprise Group's performance especially during the quarter," she told analysts on a conference call. "Weak execution has amplified the market challenges we know exist."
"It's unlikely ... that we'll see the growth in 2014 that I had hoped."
Whitman said the computing giant was "back in the market" for strategic acquisitions, which she saw as essential to a continued transformation.
The company recorded revenue of $27.2 billion in the fiscal third quarter, down from $29.7 billion a year earlier. That missed the $27.3 billion in sales that Wall Street had expected, on average.
Net income in the quarter came to $1.39 billion or 71 cents a share, compared with an $8.9 billion loss a year earlier when the company registered a writedown of the IT outsourcing business it inherited when it bought Electronic Data Systems for close to $14 billion in 2008.
Become a member of the CIMdata PLM Community to receive your daily PLM news and much more.
Tell us what you think of the CIMdata Newsletter. Send your feedback.
CIMdata is committed to your privacy. Your personal information will never be sold or shared outside of CIMdata without your express permission.