HP’s Whitman says that company’s turnaround continues

Meg Whitman, chief executive of Hewlett-Packard, said in a conference call with analysts that HP’s financial turnaround continues even as the company reported weaker-than-expected third-fiscal quarter earnings and revenues.

But investors may be wearing a little thin on patience. HP’s stock tumbled 0.75 percent to $25.19 a share in after-hours trading, after the earnings report came out.

Whitman said industry standard systems and personal systems have not turned the corner. But other areas such as storage, software, hardware unit sales in printing, and enterprise services have improved.

“Overall, I’d say our financial turnaround continues,” she said. “We see a continued weak enterprise spending segment.” She said Europe was challenging and China was soft. Third fiscal quarter revenues were driven by software, enterprise services, and other categories.

She said the company is focused on getting the “right leadership” in place on the executive leadership team. Bill Veghte, chief operating officer, will head enterprise while Dave Donatelli, former head of enterprise, will take on a special assignment. There are no plans to replace Veghte as COO. Henry Gomez will become the new chief marketing officer, while former CMO Marty Homlish will become chief customer experience officer.

“There are areas that are doing well, and areas that have to improve,” Whitman said.

She said enterprise services signings are strong, but they are mostly renewals. She said the cost structure is more aligned with revenue, and the company will see pockets of revenue growth in 2014, but not an across-the-board revenue improvement.

via VentureBeat http://venturebeat.com/2013/08/21/hps-whitman-says-that-companys-turnaround-continues/