Tag: meg whitman

HP splits itself apart

Meg WhitmanHewlett Packard is no more because it has cut itself into two.

And this morning CEO Meg Whitman (pictured) will open trading on the New York Stock Exchange as the CEO of Hewlett Packard Enterprise (HPE).

The other bit of HP will be headed by Dion Weisler.

Over the last three months or so, both companies have been working out how the nuts and bolts of both businesses work, and have already divided their support web sites so that if you need a bug fix or an upload, you get directed to the relevant pages.

HPE will deal as its name suggests with the enterprise side of business, while HP Inc will carry on selling printers, PCs and the like.

The split actually happened yesterday after HP’s Whitman said it would divide itself in two in early October.

HP was formed by Dave Packard and Bill Hewlett and went into business in 1939.

HP had a rough time in the early years of this century under the stewardship of Carly Fiorina. Then followed Mark Hurd, who now works for Oracle, followed in rapid succession by Leo Apotheker, who mastermind buying Autonomy for $10 billion.

He only lasted for just under a year.

Autonomy man takes HP to court

Meg WhitmanThe ex-CEO of Autonomy said today he is going to sue Hewlett Packard for $150 million.

HP bought Mike Lynch’s company for $11 billion in 2011, and then accused him later of mismanaging the company and wrote off billions of Autonomy’s value.

HP is suing Lynch for damages over $5 billion and alleges that Autonomy had presented the appearance of a high power software company when it wasn’t.

But Lynch claimed that HP made allegations that were damaging and misleading and has due diligence documents made at the time.

He believes that HP acted incompetently over the acquisition and that caused the relationship to fall apart.

He wants to make HP’s CEO Meg Whitman appear in court.

HP’s fortunes waxing, CEO says

The CEO of HP told analysts yesterday that her business is on the mend.

Meg Whitman said that falls in its revenue last year will be stemmed in financial year 2013, showing some growth.

HP has suffered because it formerly relied on sales of printers and of PCs – both markets are currently in the doldrums.

Whitman told the Wall Street analysts that she wasn’t going to spin off parts of the firm nor would she start another restructuring.  The last restructure saw nearly 30,000 people losing their jobs.

HP shares (tick: HPQ) rose on Wall Street after the announcement, to stand at $22.65 at close of play.

Oracle’s Ellison earned $264,109 a day

The CEO of Oracle, dashing Larry Ellison, earned $96.4 million last year and it’s hard to figure out how he can make ends meet.

That’s $11,004 an hour, or if you prefer it, $183.4 a minute, and $3.05 a second.

The figures, compiled by the Wall Street Journal, show Ellison is way ahead of the corporate CEO pack.  Apple’s Tim Cook only earned a paltry $4.2 million, while Paul Otellini, the ex-CEO who left Intel yesterday, raked in $18.3 million. This makes Tim Cook something of a pauper in the CEO stakes.

Meg Whitman, at HP, earned a respectable $15.1 million, but Rupert Murdoch at News Corp, trousered $22 million. Virginia Rometty, at IBM, only managed to make $14.7 million.

The figures include stock awards.

HP snags top spot in Indian PC market

HP has issued a boastful press release that claims it is top of the pack for PC sales in the booming Indian market.

Using the latest regional IDC data, HP declared that it has 16.5 percent of the India market in Q4 2012, regaining the top spot with share growth of 3.5 percent year on year.

The company said the top spot was thanks to strong sales and marketing, as well as “good mind-share among consumers”.

Portable computers, HP said, still have strong traction in PC market segments despite the weaker picture overall.

HP pointed to its latest HP Envy x2, which doubles as a tablet, as well as a scheme in partnership with Universal Music India to launch HP Connected Music, a content service for that market.

HP, the company said, sold two PCs every second throughout 2012 globally – 32 million shipped per week. 

Arch HPer Meg Whitman, who has been embarking on restructuring efforts to save the company’s bottom line, recently claimed at its channel partner conference that the firm is on the mend

HP's Whitman claims company is on the mend

The CEO of Hewlett Packard opened the company’s global partner event in Las Vegas today.  She said that the four year plan she pitched last year is already bringing results and by 2014 the company will completely re-invent itself.  The event was covered by Mike Magee, who is in Las Vegas for the event, and reports more HP news on our sister title, ChannelEye.

Meg Whitman took home $15.4 million in 2012

Despite HP reporting losses in 2012 it’s new chief exec walked away with a tidy pay packet, a report has found.

Meg Whitman, who took over the firm from Leo Apotheker in 2011, was paid out around $15.4 million last year, despite HP suffering a net loss in the first year she was in charge.

In November  the company announced that it was taking an $8.8 billion writedown, including $5 billion on the value of Autonomy, which it bought for $10 billion in 2011.

A federal proxy filing, posted late last week, and obtained by Reuters showed that the business woman received a mere $1 in basic salary wages. However, she had her fill with a $1.7 million bonus, while HP stock options and stock awards made up the rest of her pay packet.

Whitman is attempting to resurrect the company with reforms – including cutting around 29,000 jobs over the next two years – to reverse a previous corporate decision to spin off HP’s PC division. The sum she received was 70 percent of her proposed earnings.

Executives, who saw their pay cut as a result of a 39 percent stock drop, as well as poor sales of HP’s tablets and laptops, are also sure to be spitting feathers at the lightness of their wallets.

In July 2012 the company posted an $8.9 billion loss for the third quarter, blaming some of it on a $13.9 billion acquisition of EDS in 2008. In its full year earnings for 2012, the company said its net revenue of $120.4 billion was down five percent from the prior-year period, while the fourth quarter, net revenue of $30billion was down seven percent.

It said the losses were as a result of poor sales in hardware, services and printing revenue. 

Apotheker: Don't blame Apotheker for Autonomy

The most exciting CEO in Hewlett Packard’s history, Leo Apotheker, has joined the very public blame game surrounding the multibillion dollar acquisition of British software outfit Autonomy, claiming the buck stopped with the firm’s board members.

Apotheker was in charge of HP when the $10.3 billion purchase of Autonomy was completed, shortly before he was ousted from the firm in September last year.   

In a statement to Bloomberg, Apotheker claimed that the subsequent write down of $8.8 billion from HP’s value as a result of the purchase was not entirely his fault.

Apotheker said that “no single CEO is ever able to make a decision in isolation”, particularly when it is one the size of HP. He said that the board convened regularly to review the acquisition, before “unanimously” supporting the deal. He also commented that the HP board was in full support of the proposed strategy to move into enterprise data services.

Apotheker took the top job at HP following the departure of Mark Hurd as CEO, and attempted to change the focus of the company away from PC and printer sales. However, he claims that he was not given enough time to complete his vision for the company’s transformation, and that his strategic vision was essentially “sound”.

“Unfortunately, I was never given the opportunity to implement the strategy in its totality,” Apotheker said. “The new leadership has now been in place longer than my 11-month tenure. But it’s clear that HP still is in search of the right path forward.”

Current CEO Meg Whitman was one of the board members at the time of the Autonomy deal. She has laid much of the blame for the botched deal on Apotheker, as well as starting legal proceedings against former Autonomy boss Mike Lynch.

Lynch, who left the firm earlier this year, ramped up the public feud recently by starting a website aimed at providing a voice for former Autonomy staff. Lynch has argued that he has been unfairly scapegoated by the IT giant, with HP making accusations through the press without providing full details of financial irregularities.

Aside from the infighting of HP staff, present and former, the Autonomy fiasco has also allowed competitors to weigh in with their views.

Tin box mogul, Michael Dell, told the Sunday Telegraph last week that he too was offered the opportunity to purchase the British enterprise software firm, but was aghast at the price.

“It was shopped to us as well,” he said, adding that the it would not be willing to meet Autonomy’s valuation. “Not at that price. That was an overwhelmingly obvious conclusion that any reasonable person could draw.”

Oracle boss Larry Ellison has also been vocal about the overvaluation of Autonomy, claiming that HP paid double what it had previously refused to hand over for the firm.

HP has vowed to stick by its expensive purchase, and will aim to increase the integration of Autonomy software into its portfolio.

HP posts $8 billion EDS charge

Hewlett Packard has shuffled about its Enterprise Services top brass, appointing Mike Nefkens, senior veep and GM at HPES, to run the lot – for now. As for John Visentin, he will be leaving the company to “pursue other interests”. The company also warned that it will post an $8 billion Q3 charge tied to its Electronic Data Systems corp.

Along with Nefkens’ promotion, Jean-Jacques Charhon, senior VP and CFO at HP ES, has become chief operating officer and will account for “increasing customer satisfaction and improving service delivery efficiency”, which the company is hopeful will lead to profits.

But for EDS, which HP acquired in 2008, the write-down is thanks to market conditions in the services industry as well as recent stock trading values. Stocks dropped almost 60 percent since the EDS deal closed, the Wall Street Journal reports.

HP also changed its expectations of a pre-tax charge for Q3 relating to its restructuring program, which was announced earlier this year. This is because of a higher than anticipated acceptance rate under the early retirement program, the company says, as well as a faster than expected implementation of its “workforce reduction program”. Previous estimates were for a pre-tax charge of roughly $1 billion but now sit at as high as $1.7 billion.

The company, under the care of Meg Whitman, also expects an increase in Q3 earnings compared to earlier estimates.

Mystic Meg Whitman consulted her crystal balls earlier this year and, in a staggering demonstration of corporate clairvoyancy, predicted 27,000 HP staff would soon be out of work.

HP axes 27,000 while results disappoint

Computer giant Hewlett Packard will, as expected, put 27,000 of its people out of work while its profits for its latest financial quarter fell by a third while its revenues slipped by three percent.

The job cuts had been widely heralded and are part of a broad restructuring of the company as it gets dragged, screaming and shouting, into the second decade of the 21st century.  The cuts mean HP is shedding eight percent of its toal workforce.

Although the results were, in general, none too rosy, surprisingly its PC division grew for its financial quarter, turning in revenues of $9.5 billion.  HP’s software division grew by over 20 percent to $970 million on the back of its takeover of British company Autonomy. Its lucrative printer ink division showed a 10 percent decline for the quarter.

Meg Whitman, the CEO of HP, described the worldwide as economy and signaled Europe out for particular attention. The company wants to put more of its efforts into cloud computing.