HP has announced financial results for its third fiscal quarter ended July 31, 2011, as well as the commencement of a company transformation plan.
HP’s third quarter net revenue is $31.2 billion, up 1% from the prior-year quarter and down 2% when adjusted for the effects of currency.
HP unveiled the details of a plan to accelerate the strategy introduced in March 2011. The plan introduced today will:
* Move HP into higher value, higher margin growth categories
* Sharpen HP’s focus on its strategic priorities of cloud, solutions and software with an emphasis on enterprise, commercial and government markets
* Increase investment in innovation to drive differentiation
As part of the transformation, HP announced that its board of directors has authorised the exploration of strategic alternatives for the company’s Personal Systems Group.
HP will consider a broad range of options that may include, among others, a full or partial separation of PSG from HP through a spin-off or other transaction.
HP will discontinue operations for webOS devices, specifically the TouchPad and webOS phones. The devices have not met internal milestones and financial targets. HP will continue to explore options to optimise the value of webOS software going forward.
“We’re focused on improving performance across the business,” said Léo Apotheker, HP President and CEO.
“HP is taking bold, transformative steps to position the company as a leader in the evolving information economy. 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,” said Apotheker.
Staff Writer
