Hewlett Packard 1Q14 Earnings Call Notes

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A digest of some of the top insights that I’ve gathered from this week’s earnings calls.  Full notes can be found here.

Continued stabilization in commercial PCs

“Overall, we’re seeing a slowing market contraction and signs of stabilization, particularly in commercial PCs.”

Consumer notebook revenue grew slightly

“Commercial sales grew 12% year-over-year with consumer sales down 2% although consumer notebook revenue grew slightly for the first time since the fiscal 2010 third quarter.”

Cutting workforce to improve efficiency, not because of outlook

“this actually has nothing to do with our confidence in the business. This has to do with really now understanding the opportunities that we have to make this company better. ”

Added benefit of lowering costs, increasing competitiveness

“the longer I am here and this management team is here the more opportunities we see and we think that’s goodness. That’s goodness because it makes us easier for customers to do business with, it makes easier frankly for employees to get things done here. And by the way has an added benefit of making us lower cost so we’re better able to compete in a new world order.”

More opportunities the deeper you get into a turnaround

“I’ve done a number of turnarounds in my carrier, not at the scale I will say, but they are always you see more opportunities the deeper that you get in. And so I am actually quite excited about the opportunities it provides”

Stabilization in EMEA PC market

“by the way there is some strength in [EMEA] flat year-over-year for the first time in seven quarters. So the market is definitely stabilizing.”

PC refresh cycle, and people realizing that tablets can’t do everything

“we also see some momentum in what I would call a long overdue PC refresh and frankly the fact that companies are realizing there is a need for a productivity tool that’s different than just a tablet.”

Have to be more nimble, which is why trimming work force

“we need to run this company more efficiently, not only for the benefit of cost which is good because then we can reinvest and things that will make us stronger but frankly in terms of ease of doing business, ease of working here and faster more nimble decision making. We’re going to have to be quicker and faster and more nimble to compete in this new world order. And by the way having a lower cost structure is an added benefit to that.”