• cartridgewebsite-com-big-banner-02-09-07-2016
  • mse-big-new-banner-03-17-2016-416616a-tonernews-web-banner-mse-114
  • 05 02 2016 429716a-cig-clearchoice-banner-902x177
  • Print
  • 4toner4
  • 2toner1-2
  • Video and Film
  • big-banner-ad_2-sean
  • mse-big-banner-new-03-17-2016-416716a-tonernews-web-banner-mse-212
  • 7035-overstock-banner-902x177


 user 2008-05-22 at 3:02:59 pm Views: 79
  • #20129

    HP’s US sales ‘not all bad, not all good,’ says CEO
    HP’s global sales offset flat U.S. ones
    High tech – The boost might not be enough as Hewlett-Packard prepares to digest EDS
    , 2008 Hewlett-Packard Co. cashed in on rising international demand in
    its second quarter, but that performance may not be enough to ease
    worries about HP’s exposure to the ailing U.S. economy as it prepares
    to digest the second largest acquisition in its 69-year history.The
    results released Tuesday came as no surprise because HP provided a
    snapshot of its latest quarterly numbers and outlook last week when the
    Palo Alto, Calif.-based company jolted investors with the news it would
    buy technology services provider Electronic Data Systems Corp. for
    $13.2 billion.The deal has raised concerns that Plano, Texas-based EDS
    will compound the headaches that HP may be facing if U.S. demand for
    its personal computers, printers and other products and services
    remains flat or slumps as consumers struggle with high gas and food
    costs.Among other challenges, HP probably will have to make substantial
    layoffs from a combined work force of 210,000 employees while trying to
    blend two corporate cultures after the EDS deal closes late this year.

    Layoffs in NW expected
    the Northwest, HP has big campuses related to its printer business in
    Corvallis, Vancouver and Boise, and it recently told employees it would
    cut back its printer operations at all three. Workers expect hundreds
    of job cuts, but the company hasn’t provided details.HP is counting on
    EDS to boost the demand for its services and computers among major
    companies and government agencies while improving its competitive
    position against IBM Corp., the leading seller of technology
    services.EDS also has Oregon ties, by way of its $420 million purchase
    last fall of Saber Corp. The software company, operating as an EDS
    subsidiary from its Portland headquarters, contracts with state
    governments for software that helps run a wide variety of state
    services, including vehicle registration, driver’s licenses, voter
    registration and unemployment services.Echoing remarks from a week ago,
    Chief Executive Officer Mark Hurd, assured reporters Tuesday that the
    acquisition will pay off.”Make no mistake about it: We will get the
    cost right and we will create value for shareholders,” he said during a
    conference call. In a separate call with analysts, Hurd acknowledged
    the difficulty facing HP in the United States, where the company’s
    second-quarter sales were unchanged from a year ago.”The best thing
    that I can tell you about the U.S. is that it’s a very spotty market,
    and we try to maintain caution around it.”

    Diversity saves revenue
    several other large technology companies, HP’s international diversity
    is helping to offset the debilitating effects of the weak U.S. economy.
    Markets outside the United States accounted for 70 percent of HP’s
    revenue in the second quarter.The strong international demand, fueled
    in part by the weak U.S. dollar, propelled an 11 percent increase in
    HP’s second-quarter revenue, which totaled $28.3 billion. If currencies
    had remained stable, HP said its revenue would have been up by 5
    percent.HP fared particularly well in the rapidly growing economies of
    China, India, Russia and Brazil, where its sales climbed 26 percent
    from last year.The company also was helped by strong worldwide sales of
    notebook computers, which climbed 31 percent from last year. Sales of
    desktop computers remained flat, a trend that Hurd attributed to rising
    consumer demand for more portable devices that can access the Internet
    over wireless networks.In the quarter ended April 30, HP earned $2.06
    billion, or 80 cents a share, a 16 percent increase from $1.76 billion,
    or 65 cents, in the year-ago period.HP also reiterated the improved
    outlook it gave a week ago. But the solid second-quarter performance
    and upbeat forecast for the rest of the year haven’t been enough to
    fully restore the erosion in HP’s stock price since news of the EDS
    deal leaked out. HP shares are down about 6 percent since then.In
    Tuesday’s trading, HP fell 25 cents to $46.46, then shed another 31
    cents, or 0.7 percent, in extended trading.