Is Hewlett-Packard Dying a Slow Death?

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

May 23 (Bloomberg) -- Cantor Fitzgerald's Brian White and Bloomberg's Anand Srinivasan and Cory Johnson discuss Hewlett-Packard's turnaround plan with Trish Regan on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Company that still gets quite a bit of its sales off pc's., and industry we know is going away, slowly but surely.

Pc sales for the quarter was a little bit better than industry growth.

Fundamentally, the story of this death by a thousand cuts at hewlett-packard is one i have been covering for more than 10 years.

Every quarter is some piece of pain.

We have seen 11 straight quarters of revenue decline.

Profits were up.

They are talking about more cost cutting, job cuts.

London mentally, the company is getting a little smaller every year of stop -- every year.

You think about what michael dell did, taking his company private because he knew he had troubles in the private market, a man's investors were putting on him.

He and the private equity backers saw something there.

What could be there in hp's case?

As we talk about the pc business struggling, the pc business was up 7% this last quarter.

This is a positive point for them.

The services business, the software business -- they are going through a sea change.

It is called the cloud.

The way that i.t. is being purchased and implemented across organizations small and large is dramatically changing, and hp is caught in the middle of it.

Dell is caught in the middle of it.

Dell saw something there, enough for them to take the company private.

What is it that hp could do that they are not doing right now, that they need to do?

That is my question of the day.

What is the endgame for hp?

We have set for a couple of years, exit the pc business.

In the near-term, it is doing a little bit better.

It is a great time to get out.

The area is becoming swiftly commoditized by players in taiwan.

Or you have companies like oracle or cisco, that are ramping up the server business.

You have players in the low end in asia.

They are selling to china.

16,000 jobs -- that is a lot of people.

Is the business ranging that badly?

It is really 50,000 jobs.

You think about the 34,000 already, yes.

When i look at this quarter, i see the polishing of a turd, a difficult situation the company is managing quite well.

They managed to take a crummy business in pc's and do better than anyone else.

They turned around the printer business and survived that.

Cash flow from operations is a lot better than people anticipated, it is important for a company that has a lot of debt to pay down.

Fundamentally, the overall strategy problem survived, even as they make it through a quarter that looked a little better than anticipated.

Meg whitman, a lot of people saw her as a visionary.

She came from ebay.

She was part of the cutting-edge tech culture.

Now, she seems to be part of the old tech culture.

This is the incredible shrinking hp.

She is a part of it.

Rockets at this company have fallen 29%, versus 2011. headcount will be down 16%. i think they are lucky to have her, but she has got a tough job.

Quick thank you so much.

Coming up, investors cheering a

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change