HP's Upbeat Outlook

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Transcript by Newsy BY JIM FLINK You're watching multisource video technology news analysis from Newsy...
Transcript by Newsy BY JIM FLINK You're watching multisource video technology news analysis from Newsy. “Leo Apotheker talks about a secret sauce and how it is going to be the key to HP’s growth in the years ahead.” (Bloomberg) Secret sauce you say? Well -- there’s a lot cooking at HP. Quarterly earnings -- just the half of it. The good half. The other half -- high DRAMA. HP is definitely moving in a new direction under new CEO Leo Apotheker. Away from the direction of former boss Mark Hurd -- now over at Oracle. The same Oracle -- trying to sue Apotheker. First to the numbers, which are bucking the downward tech trend. Forbes says, HP -- the world's largest technology company by revenue -- reports net income rose and its revenue jumped. “Hewlett-Packard brought cheer back to the tech world, topping analysts' estimates ...Earnings per share were $1.33, up 17% and above analysts' expectations of $1.27. Revenue also came in above expectations at $33.3 billion, up 8.3% from the same period a year ago.” Until now, HP has been shrouded in mystery. Apotheker -- the former CEO at SAP -- has been elusive since taking over in September. He’s been pursued with subpoenas by Oracle -- over allegations an SAP subsidiary illegally downloaded Oracle software. The Wall Street Journal notes, this is the first time anyone has heard from Apotheker since he switched jobs. “Since this guy got the job, people haven’t really been able to hear from him. Part of that is due to this dispute with Oracle and SAP that HP has essentially been roped into because of his prior role with SAP. He’s essentially kept a really low profile this time, and it’s probably a bad time to do that, because there’s been a lot of concern about, what kind of CEO is he going to be?” So naturally, ZDNet says -- reporters wanted to know -- where’s Leo -- now? “HP’s new CEO was also asked where he was physically at the moment. Apotheker quipped: ‘That’s an odd question.’ He then noted that he was in HP’s Palo Alto headquarters with a bunch of other people. ‘Would you like a picture?’ he asked.” Clearly, Apotheker has been quietly busy, changing the culture at HP. Hurd was all about slashing salaries and Research and Development. Apotheker has made those same elements -- his recipe for success. “Now is the right approach? Is RandD what investors want to focus on? ... In the era of Cloud of virtualization and all these new technologies, you need to teach all this equipment to speak to each other and interact with itself, and in that regard you definitely need a more engineering intensive culture to bring these next generation capabilities to the data center.” So what do you think of HP these days? On the right path? Or hard to say given all the distractions? Get more multisource technology news headlines from Newsy
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