HP releases Q3 2011 earnings report

HP releases Q3 2011 earnings report
HP releases Q3 2011 earnings report
Nominal revenue up slightly compared to same quarter last year, company-wide "transformation" will take effect starting today

Following on the tragedy of the webOS platform, HP has announced its latest earnings for this quarter and a company-wide “transformation.”

For the ending quarter, revenue for HP was up $31.2 billion USD compared to $30.7 billion from Q3 2010. The company has also lowered its 2011 revenue estimates slightly, down from $127.6 billion to $127.2 billion.

As for the company transformation, this includes the discontinuation of webOS, possible selloff of their PC unit, a potential acquisition of software company Autonomy, and a new long-term strategy for their business model. According to the press release, HP will be (1) refocusing on products with higher value and margins, (2) prioritizing commercial and enterprise markets and (3) drive differentiation through higher investments in innovation.

HP is taking bold, transformative steps to position the company as a leader in the evolving information economy,” said HP president and CEO Leo Apotheker. Today’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.

This particular earnings report has the potential to be a significant turning point for the company, as it represents an about face for many of its operations and infrastructure.

Source(s)

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Author: Allen Ngo, 2011-08-19 (Update: 2012-05-26)