[Am-info] Money-Losing HP Wringing Costs From PC Business

[Fred A. Miller]

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

Money-Losing HP Wringing Costs From PC Business

Hewlett-Packard reported a net loss of $2 billion for its first=20
quarter of combined operations with Compaq, as the company=20
absorbed $3 billion in expenses related to layoffs and other=20
merger costs. But execs promised better performance for the=20
current quarter as the newest HP wrings costs from its=20
money-losing PC and server businesses.=20

"This is a challenging period, not just for our company, but for=20
the whole IT sector," CEO Carly Fiorina said during a conference=20
call with analysts Tuesday. Recent data suggest "continued=20
weakness in IT spending," she said, adding that a recovery is=20
"not happening in the second half of '02."=20

HP derived about 29% of its third-quarter revenue from its=20
printing and imaging division; about 29% from PCs and handhelds;=20
23% from servers, storage, and software; and 18% from IT=20
services. Only printers and services turned a profit, though. HP=20
president Michael Capellas predicted that cost-cutting, direct=20
sales, and a "major push to gain share" in the small- and=20
midsize-business market will help the company make a profit on=20
PCs by the first half of fiscal 2003, which begins Nov. 1.=20
- - Aaron Ricadela

Read the full story at:
http://update.informationweek.com/cgi-bin4/flo?y=3DeIfs0Bce7K0V20BhQ40AC

Or go deeper into things HP by reading:
Outsourcing Fastest-Growing Segment For HP
http://update.informationweek.com/cgi-bin4/flo?y=3DeIfs0Bce7K0V20BhCf0Am

- --=20
Fred A. Miller
Systems Administrator
Cornell Univ. Press Services
fm@cupserv.org, www.cupserv.org
- --- SuSE Linux v8.0 Pro, KMail 1.4.3---
-----BEGIN PGP SIGNATURE-----
Version: GnuPG v1.0.6 (GNU/Linux)
Comment: For info see http://www.gnupg.org

iEYEARECAAYFAj1s2uoACgkQB9vk4ichYXfAIgCdGH/stdya6bqZJ7WAXr5kroOQ
MOkAn00EFhq5xVFP8v5kjDL62A2N02Ax
=3DHTMV
-----END PGP SIGNATURE-----