Hewlett Packard FY 4Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Net cash position vs. net debt position in 2012

“As a result, our balance sheet now stands at an operating company net cash position of $5.9 billion, a significant improvement from the $11.8 billion of operating company net debt in the first quarter of fiscal 2012.”

Finally breaking up the company

“Last month, we made another significant announcement that I believe will help accelerate the progress we’ve already made in the turnaround. We plan to separate HP into two new market-leading independent publicly traded companies. Hewlett-Packard Enterprise will lead the next-generation technology infrastructure, software and services for the new style of IT.

HP Inc. will be the leading personal systems and printing company, delivering innovations that will empower people to create, interact and inspire like never before. ”

Saw weakness in Japan enterprise

“We saw softness in Japan, which contributed to about half of the regional decline. And as Meg mentioned, had a tough compare in India related to the large PC deal won in the same period last year.”

The US is strengthening in a way that is way different than the last 3 years

” I would say, from a macroeconomic point of view, we don’t expect much change across the globe with the exception of the United States, which does seem to be strengthening in a way that is different from the last three years.”

We have 786 legal entities at HP

“the immediate mandate and I am going to a little bit of detail here is there is a corporate separation management office, who is tasked with creating three years of historic financials for each of the different businesses, which of course we do not have because we’ve been together. Second is a very detailed analysis of tax and legal separation. We have over 786 legal entities that this company, all of which have to be looked at and rationalized.”

Separation is totally the right thing to do

“I will say is this separation was totally the right thing to do for this company. It will as I said make us more customer focus, but it also give us a chance to clean sheet two new Fortune 50 companies.”