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Kinda says there are no buyers and no sellers at the present time. That takes the traders out of the equation for now.
Also, it looks like the margin players have finally sold out and the volatility is gone from that, only to return, when we go higher at some point and the margin players make the same mistakes again.
Maybe we can help HP with higher margins!!
UPDATE 4-HP to cut net 3,000 jobs, aims for higher margins
Tue Jun 1, 2010 12:40pm EDT
By Ritsuko Ando and Franklin Paul
NEW YORK, June 1 (Reuters) - Hewlett-Packard Co (HPQ.N) said it aims to boost margins by cutting jobs and reallocating spending to more profitable technology services, shrinking its workforce by a net 3,000 jobs, or 1 percent, over three years.
The move, which will result in a $1 billion charge, comes as rivals like IBM (IBM.N) and Cisco Systems Inc (CSCO.O) vie for supremacy in the lucrative business of fitting out and helping run corporate data centers that handle communications and store huge amounts of information.
HP made a major expansion into technology services with its $14 billion acquisition of EDS in 2008, and it said Tuesday's announcement was a further attempt to bolster its enterprise business.
"Over the past 20 months, we focused on integrating EDS and improving profitability," said Tom Iannotti, senior vice president and general manager of HP's Enterprise Services. "Now that the integration is largely complete, we have identified significant opportunities to grow and scale the business."
HP plans to cut 9,000 jobs over three years as it shuts down older data centers. But it will also add 6,000 new positions over the same period as it invests in more advanced data centers and expands its global operations.
The company currently has about 304,000 employees worldwide and is the world's largest technology company by sales.
HP said the new data centers will feature more powerful computers that help customers run complex applications, and introduce more automated infrastructure. Most of the new hires will be in sales and services, it said.
HP said severance and asset impairment charges will result in a $1 billion restructuring charge over three years, with half of that to be recorded in the third quarter.
On a net basis, the company sees savings of $500 million to $700 million annually by the end of its 2013 fiscal year.
INCREASING RIVALRIES
Large technology companies like HP and International Business Machines Corp have been vying to dominate corporate capital spending and to impress Wall Street with higher margins.
IBM has improved margins by focusing on profitable services contracts, and it recently announced plans to expand its services and software business by spending $20 billion on acquisitions through 2015.
Collins Stewart analyst Louis Miscioscia said HP had done a good job of cutting jobs at EDS and investing in more automation, but IBM appeared to be still a step ahead.
"We believed there was more to be done as HP/EDS works to catch up to IBM in the areas of data center automation and modernization, and thus we are very supportive of this move," he said, reiterating a "buy" recommendation on HP.
Under Chief Executive Mark Hurd, HP has been been cutting costs while simultaneously pursuing multibillion-dollar acquisitions to move into higher-margin businesses.
HP agreed last year to buy network equipment maker 3Com Corp for roughly $3 billion, going directly against communications gear maker Cisco.
Cisco, for its part, has also pitted itself against HP by expanding into servers and all-in-one technology services designed to help companies manage their data centers.
Shares of HP were up 15 cents, or 0.3 percent, at $46.16 in early afternoon, in line with the Dow Jones industrial average .DJI. (Reporting by Ritsuko Ando and Franklin Paul; Editing by Derek Caney and Matthew Lewis)
It seems to me that the gorilla OEMs knew what they were doing when they went to the expense of including TPMs in the last 300-400 million computers. There must be a reason why they went to that expense.
The margins are so small on computers sales that the cost of the TPMs, plus the bundled software, brings their margins down. That would not happen if the TPMs & software were not included in their hardware.
So why did all the OEMs include a TPMs in their computers over the past couple of years?
Was it preparing the users of computers to be ready do secure their passwords and sign ons? Were the major OEMs just waiting until there were enough CPUs out there before convincing users to turn on the TPMs?
I believe the time is very close to when TPMs will rise to the importance they were given (by including them in 300-400 million computers)and will be turned on. When they are turned on, a whole new paradigm will finally happen, and Wave will be involved, and success will finally come our way like never before.
A little more patience, and we are there.
Just a reminder to all. Anytime the word "delete" is mentioned in a post, that post is automatically deleted.
If anyone thinks a post was deleted in error, they have a right to appeal it to IHUB. The funny thing is that IHUB probably deletes more post than the monitors of this board.
So please folks, avoid having your post deleted by not using the word delete in your post.
Thanks for the co-operation.
Yesterday we went from the $3.00s to the $2.60s at the end of the day. Was that capitulation?
June will bring out a new line of HP computers. I guess we will see if we are involved in the new line. That would be nice.
Wave is a real company now and it can move with the markets.
I still believe the volatility of the past few days is due to many having to shed speculative stocks in their portfolios,, and more than anything: margin players having to come up with cash. The shorts have not been absent either, or find themselves having to cover YET!
PC Shipments Expected to Surge 22 Percent in 2010
by: Larry Dignan May 26, 2010
Global PC shipments are expected to hit 376.6 million units in 2010, up 22 percent from a year ago, according to Gartner. Those units will equate to spending of $245.4 billion, up 12 percent from 2009.
The home PC market will have unit growth of 29.5 percent with the commercial PCs growing 13.1 percent in 2010.
Among the key items from the Gartner report:
* Consumers are beginning to see PCs as necessities.
* Windows 7 upgrades and an aging installed base are driving commercial upgrades.
* The majority of corporate PC upgrades will happen in 2011 and Windows 7 migrations will last through 2012.
* Mini-notebooks (netbooks) will see 41.8 million units shipped in 2010, up 30 percent from 2009.
* Mini-notebooks will be 18.6 percent of the mobile PC market in 2010, but share will fall to 13.9 percent by 2014.
* China and the U.S. will account for half of the PC shipment growth in 2011.
* Media tablets—iPads and similar devices—will have 10 million units shipped in 2010.
The PC report is the latest positive data point for hardware sales. Global server shipments were up 23 percent in the first quarter, according to Gartner. Here’s the unit standings for servers:
http://seekingalpha.com/article/207068-pc-shipments-expected-to-surge-22-percent-in-2010?source=yahoo
From the Q4 CC.
We look to continue to add additional products. Today, we're focused on both the enterprise server and the self-encrypting drive supporter or what we call Trusted Drive Manager. We have already closed business contracts with HP customers in this quarter. So, we're very pleased with that. It's an area you will see us continue to invest in during the course of this year. If we're going to successfully build HP to a significant contributor in revenue, it takes resources to do that, both in training the reseller channel, in marketing resources, as well as in just the people internally working on a day-to-day basis with HP to make sure the process goes smoothly.
So far that project has been going very well. I think both HP and Wave are very pleased with the progress we've been able to make so far, over the course of the last really 90 days or so. And we're excited about the opportunities for it in the future. Clearly, one of our goals in 2010 is to bundle our software directly with HP platforms and we look forward to that. I think that there are a number of customers who would like to see a factory integrated solution. And certainly we are very interested in that happening as well. Ultimately, customer demand is going to drive that requirement, and I think we're showing that customer demand to HP today.
You can find the Q4 CC call here. This information was in the IBOX intro to this board.
http://www.unclever.com/wavx/
Some interesting posts from you since you signed up yesterday.
Are you familiar with what was said about HP in a conference call a couple of quarters ago?
(Reuters) - IBM (IBM.N) plans to buy Sterling Commerce from AT&T Inc (T.N) for about $1.4 billion in cash to expand its portfolio of software for companies in financial services, manufacturing and retail.
Sterling's software and services help companies securely transfer electronic documents, such as purchase orders, payroll information, invoices and healthcare claims. It is the No. 2 player in the field after privately held GXS Inc.
"The market is fairly mature, with low growth in recent years, but with potential for solid profitability," said Thomas Weisel Partners analyst Tim Klasell.
International Business Machines Corp over the past decade has been focusing on improving its profitability by concentrating on high-margin software and services rather than hardware.
It bought PwC Consulting from PricewaterhouseCoopers in 2002 and sold its personal computer business to Lenovo Group (0992.HK) in 2005. It recently announced plans to spend $20 billion on acquisitions through 2015.
Rivals like Hewlett-Packard Co (HPQ.N), Oracle Corp (ORCL.O) and SAP AG (SAPG.DE) have also been scouring for deals as they compete to offer a broad set of products and services to business customers.
Forrester Research analyst Ken Vollmer predicted that Oracle might respond to IBM's move on Sterling by acquiring another provider of such products.
Oracle offers such technology through a partnership with privately held E2open, according to Gartner analyst Benoit Lheureux.
As for AT&T, it is selling Sterling at a substantial discount to the $3.9 billion that SBC Communications paid for the company at the height of the dotcom boom in 2000. SBC subsequently became AT&T through a merger in 2005.
AT&T said it expects to record a one-time gain of about $750 million in the quarter the transaction closes, expected to be in the second half of 2010.
Sterling's 2,500 employees will be part of the WebSphere organization within IBM's Software Group. It was founded in the 1970s and has some 18,000 customers.
Sterling said it enables more than 1 billion business interactions a year for clients in financial services, retail, manufacturing, communications and distribution. Analysts said being part of IBM will help it boost its customer base.
"I think Sterling Commerce will get a lot of muscle from IBM that will allow them to better compete with GXS," Forrester's Vollmer said.
IBM has not been alone in bulking up through acquisitions. Hewlett-Packard bought EDS in 2008, and the past few months have also seen a resurgence in M&A deals in the tech sector as the economy recovers.
SAP said earlier this month that it plans to buy smaller business software maker Sybase Inc (SY.N) for $5.8 billion. Oracle last month extended its acquisitive streak with a $685 million deal for drug trial software maker Phase Forward Inc
http://www.reuters.com/article/idUSTRE64N2JS20100524?feedType=RSS&feedName=businessNews
================================================================
PETER SVENSSON AP Technology Writer
May 24, 2010 | 1:24 p.m.
NEW YORK (AP) — IBM Corp. said Monday that it is buying AT&T Inc.'s Sterling Commerce unit, which makes software that helps businesses buy and sell to each other, for $1.4 billion.
The deal would be IBM Corp.'s largest acquisition since it bought business software maker Cognos in 2008.
Sterling runs "collaboration networks" where companies can interact with vendors. It has 18,000 clients worldwide, IBM and AT&T said. Customers include H.J. Heinz Co., Motorola Inc., Boise Cascade LLC and Boston Market Corp. The parties would not provide a figure for the unit's annual revenue.
AT&T Inc., then known as SBC Communications, paid $3.9 billion for Sterling in 2000, near the peak of the Internet bubble. The price tag was driven by forecasts that all "business to business" commerce would soon be conducted through online marketplaces not unlike a stock exchange, with demand dictating prices more efficiently.
The unit, which is based in Dublin, Ohio, has little connection to AT&T's main telecommunications business and has maintained its own brand.
AT&T spokeswoman McCall Butler said AT&T's business has changed since 2000, and Sterling is "no longer core to the company's long-term strategic objectives."
Butler said with the help of IBM's purchase price, operating contributions and tax benefits, AT&T will have recouped most of its investment in Sterling. AT&T expects the deal to result in a one-time pretax gain of approximately $750 million when it closes sometime in the second half of the year.
IBM said the deal complements its portfolio of business process integration and transaction software portfolio, which grew more than 20 percent in the first quarter of 2010.
http://www.latimes.com/business/nationworld/wire/sns-ap-us-ibm-att-sterling,0,1552699.story
This is still a speculative stock at the moment, and I am sure there are those that are shedding themselves of all speculative investments. I am also sure that margin is being called every day now, and that many are losing all of their Wave shares as we speak.
When we were going up we said nothing goes up or down in a straight line and that is true for Wave right now.
Stock are only worth what someone thinks it's worth at a certain point in time. The share price is a psychological price in time: i.e what I think it's worth right this second.
Nothing has changed. TPMs are updates are either going to happen or not happen. The govt will be involved or they won't be involved. I believe Wave is going to be very successful, and I am not a seller at these prices. Maybe I'm wrong, but I am looking down the road, not minute to minute.
We also have to be in an oversold position right now.
We also now have another gap to fill, and at some point, most gaps are usually filled.
You say HP is a done deal, yet you want to wait for confirmation before you buy more. If you are so sure, why not buy now at these lower prices because surly an HP announcement would definitely drive up the price.
Do you believe or don't you? Seems to me to be a no brainier to buy now, knowing, as you do, that HP is a done deal.
Let's keep this in perspective: yesterday's volume of 700k+ was not that big of a volume day on Wavx compared to what the rest of the market did.
If the sell off had been two million plus shares, then that would have been a major sell off.
Here we are today with almost a third of yesterday's volume, up 8%.
There are still two gaps to cover from the previous two days. We gaped down from $3.57 and $3.37. They will have to be covered.
Check out who is showing at the Insurance Systems Forum in booth # 707 & booth # 154. Looks like Wave is not the only one that PRs demonstrations!!
Microsoft Transforms Insurance With Relationship-Focused Solutions
CRM solutions and cloud computing highlighted at ACORD LOMA Insurance Systems Forum 2010.
Press Release Source: Microsoft Corp. On Friday May 21, 2010, 9:00 am
LAS VEGAS, May 21 /PRNewswire-FirstCall/ --
What:
In an increasingly competitive climate, insurers are striving to provide better customer service and streamline the claims process — all while driving down operational costs. At booth No. 707 at the ACORD LOMA Insurance Systems Forum 2010, Microsoft Corp. and its partners will showcase collaborative and agile solutions that help address these core insurance business problems, drive connected experiences and streamline business processes.
At the Microsoft booth, Computer Solutions & Software International will demo a customer relationship management (CRM) solution being used to allow carriers to measure strategy effectiveness through analytics and reporting, and enabling sales teams to optimize lead management, customer pipelines and sales performance. Customer Effective Inc. will showcase a customizable and flexible CRM-based solution to help improve customer insights and increase employee productivity.
Microsoft will also showcase the power of cloud computing with a beginning-to-end automobile claims scenario featuring solutions that can be hosted on-premises or in the cloud. The demo integrates several Microsoft technologies including Windows® Phone, Microsoft Photosynth, Bing Maps, SharePoint 2010, Microsoft Office 2010, Microsoft Dynamics CRM and Microsoft Silverlight.
Sessions:
On Tuesday, May 25, at 8 a.m., Bill Hartnett, general manager, U.S. Insurance Industry Solutions, Microsoft, will introduce keynote speaker Steve Wozniak, published author and chief scientist at Fusion-io.
Also on Tuesday from 3 p.m. to 4 p.m., Microsoft partner Computer Solutions & Software International will highlight its work with Microsoft Dynamics CRM and present information on how firms can use sales performance management to increase agent engagement and gain insight into the sales pipeline of their producers — all while reducing administrative costs.
From 4:15 p.m. to 5 p.m., Colin Cole, industry technology strategist, U.S. Insurance Industry Solutions, Microsoft, will present a solution showcase about orchestrating complex insurance business processes with Microsoft enterprise solutions and externalized business rules.
When:
May 24–26, 2010
Where:
ACORD LOMA Insurance Systems Forum 2010
Microsoft Booth No. 707
Mandalay Bay Resort
Who:
Bill Hartnett, general manager, U.S. Insurance Industry Solutions, Microsoft
Colin Cole, industry technology strategist, U.S. Insurance Industry Solutions, Microsoft
Website:
http://www.Microsoft.com/ACORD
-----------------------------------------
eSignSystems to Demonstrate Electronic Signing of Life Insurance Applications at the 2010 ACORD LOMA Insurance Systems Forum in Las Vegas
Lee, MA — May 20, 2010 — eSignSystems, a division of Wave Systems Corp. (NASDAQ: WAVX; www.wave.com) today announced that it will conduct demonstrations of its SmartSAFE electronic signature and vaulting solution at the 2010 ACORD LOMA Insurance Systems Forum, focusing on the future of insurance and technology. eSignSystems’ SmartSAFE offers myriad benefits to insurance companies that can speed up the processing of new applications, and eliminate or reduce costs associated with handling and faxing paper documents. eSignatures can also add convenience for prospective policyholders, too, letting them sign applications in the comfort of their home.
What: Demonstrations of signing and storing life insurance applications using SmartSAFE
Where: Booth 154, Mandalay Bay Resort, Las Vegas
When: May 24-26, 2010
For years, many insurers have embraced “straight-through processing”—an initiative that streamlines the issuing process to be more efficient and cost effective. Shortening the transaction-related processing time can translate into a higher probability that a policy will be issued on time. eSignatures can play an important role as more and more companies adopt straight-through processing.
“eSignatures are propelled by a rapidly evolving business process and workflow automation environment, as well as the need for companies to improve their competitive position by reducing the time and effort needed to close deals,” according to Forrester’s Bill Nagel in “Market Overview: eSignatures in 2010.”
According to Forrester, eSignature adoption also is likely to increase because of regulatory pressures and efforts to minimize potential losses resulting from fraud. eSignatures can improve proof of compliance with an audit trail confirming that the signer received certain disclosures from delivery through policy acceptance.
“eSignatures are becoming recognized as a best practice for ensuring digital accountability of electronic transactions and we’re thrilled to show how our SmartSAFE software can help to safeguard electronic documents, improve customer satisfaction and reduce regulatory errors,” said Kelly Purcell, eSignSystems’ Executive Vice President. “Over the coming year, we believe that those who adopt eSignatures can benefit from the competitive advantages those solutions offer.”
The 2010 ACORD LOMA Insurance Systems Forum aims to help insurance carriers improve data integrity, meet regulatory requirements and stay competitive. It attracts C-level executives, line-of-business managers and IT staff.
About eSignSystems™ – eSignSystems a division of Wave Systems Corp. (NASDAQ:WAVX) is a leading provider of lifecycle management of electronic legally binding signed documents, contracts and digital transactions. eSign Transaction Management Suite (eTMS) enables companies to manage business processes and transactions entirely online. eTMS organizations can immediately achieve regulatory compliance, improved productivity and efficiency in processing transactions, and significant cost savings through the elimination of document transportation costs, processing and storage. For more information, visit www.esignsystems.com.
Wave Logo
About Wave Systems Corp.
Wave is a pioneer in hardware-based PC security that provides software to help solve critical enterprise PC security challenges such as data protection, strong authentication, network access control and the management of these enterprise functions. Wave is a founding member of the Trusted Computing Group (TCG), a consortium of more than 100 companies that forged open standards for hardware security. Wave’s EMBASSY® line of client- and server-side software leverages and manages the security functions of the TCG’s industry standard hardware security chip, the Trusted Platform Module (TPM) as well as hard drives that comply with TCG’s “Opal” self-encrypting drive (SED) standard. Self-encrypting drives are a growing segment of the data protection market, offering increased security and better performance than most existing software-based encryption solutions. TPMs are standard equipment on many enterprise-class PCs shipping today and have shipped on an estimated 300 million PCs worldwide. Using TPMs and/or SEDs and Wave software, enterprises can substantially and cost-effectively strengthen their current security solutions. Visit http://www.wave.com for more information.
May 20, 2010, 11:01 a.m. EDT ·
Dell, other tech stocks join in market slump
By Rex Crum, MarketWatch
SAN FRANCISCO (MarketWatch) -- Technology stocks wasted little time losing ground Thursday with every major sector leader in the red due to a broad market selloff spurred on by investors' worries about the latest U.S. job data and ongoing concerns over the economic situation in Europe.
Among leading tech stocks, Dell Inc. /quotes/comstock/15*!dell/quotes/nls/dell (DELL 14.41, -0.57, -3.81%) fell 61 cents a share, or 4%, to $14.38 ahead of the computer giant's first-quarter earnings report, due after the market close. Analysts surveyed by FactSet Research estimate Dell will earn 26 cents a share on $14.25 billion in revenue, up from a profit of 15 cents a share on sales of $12.34 billion.
Despite the decline, Dell's shares are off just 12 cents for the year. The company's report comes two days after No. 1 PC maker Hewlett-Packard Co. /quotes/comstock/13*!hpq/quotes/nls/hpq (HPQ 45.74, -1.26, -2.68%) reported a 28% increase in its quarterly earnings.
Along with Dell, H-P shares fell $1.41, or 3%, to $45.60; Apple Inc. /quotes/comstock/15*!aapl/quotes/nls/aapl (AAPL 240.00, -8.34, -3.36%) was down $8.34, or more than 3%, at $239.96 a share; Google Inc. /quotes/comstock/15*!goog/quotes/nls/goog (GOOG 479.10, -15.33, -3.10%) gave up almost $16 a share, or more than 3%, to fall to $478.37, and Cisco Systems Inc. /quotes/comstock/15*!csco/quotes/nls/csco (CSCO 23.40, -0.86, -3.53%) fell 91 cents a share, or almost 4%, to $23.35.
Romeo Dator, portfolio manager of U.S. Global Investors, said the tech sector is suffering at the hands of a "general liquidation by investors," that is fueled more by issues outside the sector rather than anything the tech companies are doing.
"Fundamentally, the tech companies [have] reported strong quarters, but we are now in a market environment where fundamentals do not matter," Dator said.
On Thursday, those issues included an increase in initial claims for jobless benefits in the U.S. The Labor Department said initial claims rose by 25,000 to 471,000 for the week ended May 15. Fears about the state of the euro and the European economic situation added to investors' unease. See full story.
The Nasdaq Composite Index /quotes/comstock/10y!i:comp (COMP 2,229, -69.10, -3.01%) responded by falling more than 72 points, or 3%, to 2,226, and is also down almost 3% for the year. The Philadelphia Semiconductor Index /quotes/comstock/10y!i:sox (SOX 338.01, -12.83, -3.66%) gave up 3.7% and the Morgan Stanley High Tech 35 Index /quotes/comstock/10t!msh.x (MSH 540.41, -16.23, -2.92%) shed 3%.
Rex Crum is a reporter for MarketWatch in San Francisco.
http://www.marketwatch.com/story/dell-other-tech-stocks-join-in-market-slump-2010-05-20?siteid=yhoof
Didn't Clay say that a few weeks ago, that it could find support at $3.00 and not to panic?
I don't know, but isn't HP coming out with a new line of computers in the first week or two of June?
Could happen at any time, but I am convinced something will happen, just don't know when.
Many of us bought a ton of shares when the s/p was under $.50. I am getting the same feeling at these prices, as I did at $.50, and I am buying a ton more here.
Good luck to all.
We have gaped down two days in a row. Will these gaps be covered?
They are getting the weak sister's shares, and the margin players that have to raise cash.
Nothing has changed. HP is still on the horizon.
In the article that DD posted this is what was said in the content:
It wants to focus instead on a lesser-known but more robust part of its business: managing traffic to websites with addresses ending in ".com" and ".net," and collecting fees for registering those domain names.
I don't see this infringing on Wave's technology.
Nothing goes straight up or straight down.
There are so many good things in Wave's future. Looks like some margin players are having to give it up AGAIN.
Nothing has changed.
On Friday May 7th I was able to buy stock at $3.30. The next Monday and Tuesday it hit over $3.70.
Classic shake out on small volume.
Who do you think has been buying between $3.37 and $3.44?
I'm a buyer the last hour. The low volume is even more reason to be buying now. Thanks for the post.
P.S. THIS IS HOW THEY ARE GETTING YOUR SHARES. Post on.
The sky is falling the sky is falling. Management has done nothing for us this year, that is why the stock has gone from $1.42 on December 31, 2009 to where it is today.
Make no mistake about what I feel the price will be this year. See below.
$10 'N 2010,(or better) that is our goal.
$10 'N 2010,(or better) that is our goal.
$10 'N 2010,(or better) that is our goal.
$10 'N 2010,(or better) that is our goal.
$10 'N 2010,(or better) that is our goal.
If and when we get a bundling deal with HP,it should be good for at least a buck or two on our SP.
HP net income surges amid mending computer market
Hewlett-Packard net income surges 28 pct amid mending computer market; 2010 outlook raised
Jordan Robertson, AP Technology Writer, On Tuesday May 18, 2010, 7:41 pm
SAN FRANCISCO (AP) -- Hewlett-Packard Co.'s latest numbers show how deeply dependent the company is on personal computers even as it aggressively expands into more lucrative areas.
HP reported after the stock market closed Tuesday that its net income jumped 28 percent and revenue rose 13 percent in the February-April period, both signs that increased demand for computers is helping heal a battered technology industry.
The numbers beat Wall Street's forecasts and HP raised its 2010 revenue and adjusted profit forecasts, sending its shares higher.
HP earned $2.2 billion, or 91 cents per share, in its fiscal second quarter, which ended April 30. It earned $1.7 billion, or 71 cents per share, in the same period last year.
Excluding special items, it earned $1.09 per share. Analysts expected $1.05 per share on that basis.
The results mark a continued growth in profit at HP, the world's No. 1 maker of PCs and printers. Although HP had been making money even during the height of the recession, its net income had been getting smaller each quarter. But for three straight quarters now, net income has been growing.
Revenue rose to $30.8 billion, better than the $29.8 billion that analysts polled by Thomson Reuters expected. In the same quarter a year earlier, revenue was $27.4 billion.
For 2010, HP is now predicting revenue of $123.7 billion to $124.9 billion, which topped analysts' forecasts for $123.0 billion. HP's earlier prediction was for revenue of $121.5 billion to $122.5 billion.
The company now expects profit of $4.45 to $4.50 per share, excluding special items. Analysts were expecting $4.45 per share. HP's previous forecast was for $4.37 to $4.44 per share.
The higher outlook excludes 69 cents per share in one-time costs, largely related to HP's restructuring and acquisitions. When those costs are included, HP's net income should be $3.76 to $3.81 per share, which is down from its earlier estimate.
HP has dramatically broadened the scope of its businesses in the past few years. Still, the numbers reinforce the extent to which HP leans on its core businesses for growth.
HP's PC division was once again a heavy lifter.
It supplies about a third of HP's overall revenue, and revenue in that division increased 21 percent in the latest quarter.
Robust consumer demand has helped buoy PC makers and their suppliers, even as they grapple with anemic corporate appetites for new PCs.
Cathie Lesjak, HP's chief financial officer, said in an interview that HP saw an "uptick" in orders from smaller businesses and the financial services industry. But as previously predicted, Lesjak said, spending by large corporations "refreshing" their PC fleets will remain weak until the second half of this year.
"We're not calling for a really big uptick in corporate refresh at this point in time, but we're definitely seeing some signs there," she said.
PCs, however, are among HP's least-profitable products. That is a major reason why HP is pushing hard into other markets, such as technology services and computer networking, where margins are higher.HP net income surges amid mending computer market
Hewlett-Packard net income surges 28 pct amid mending computer market; 2010 outlook raised
HP's $13.9 billion acquisition of Electronic Data Systems in 2008 cranked up its rivalry with IBM Corp., a services and software powerhouse.
Services now bring in more profit than any other HP business, even edging out its longtime cash cow of selling printer ink.
Still, services aren't growing as fast as other HP divisions. Revenue in the services division increased 2 percent over last year. Lesjak said that was in line with the overall market.
HP is also buying Palm Inc., a $1.4 billion deal that will strengthen HP's smart-phone business, and bought 3Com Corp. in a $2.7 billion takeover that intensified HP's rivalry with Cisco Systems Inc. in networking.
Shares in HP, which is based in Palo Alto, jumped $1.15, or 2.5 percent, to $47.94 in extended trading after the release of results Tuesday. Earlier, it closed down 73 cents, or 1.5 percent, at $46.79.
DavidHN welcome aboard.
When you make a purchase or a sell, I suggest you make it a limit order, otherwise you will probably pay more, and get less, on a buy and sell, at a market order.
DD you were correct. The increase (451,000) divided by the original shares (250,000)equals a 180% increase to the new total of 701,900.
701,900 - 250,000 = 451,000. The 451,000 divided by the 250,000 = 180% increase.
waveytrain I believe it is first in first out.
In other words, if there were no limit orders sitting on Wave to buy at $4.75 right now, and you put in an order, the minute it trades there, your shares will go off first.
If there are buys sitting there now, you would go behind the orders that are there.
Keep this is mind. There are many institutions that can not buy Wave until the share price hits $5.00. In looking at the institutions that can buy us now, where are the major institutions, that can't buy now, going to find shares to buy when they get the chance above $5.00?
Major institutions also need liquidity. I foresee some forward going splits, as the price moves up.
I believe the "real" float is around 32-35 million shares at this point in time.
Remember, they want in, they want your shares.
They will have to pay dearly, if they want in, in a big way.
Jake, a very nice article. It bodes well for Wave. A must read.
Thanks for sharing.
Good week for Wave. Closed $3.31 last Friday. Market in the tank for 2nd day in a row. Wave was up yesterday and there is a good chance we will be up again today. Very low volume. No buyers and no sellers. So much for following the market
With Cloud, Microsoft Ups Ante for Small Business
By RIVA RICHMOND
In the technology world, the battle to win the small-business workplace is about to heat up.
On Wednesday, Microsoft Corp. is set to launch Office Web Apps, the long-awaited "cloud" version of its Office suite of software, which includes business mainstays Word and Excel. The move is a nod to growing interest in Web-based applications among companies— and Google Inc.'s success in wooing an increasing number of people, especially small-business users, with its Docs online suite.
Office Web Apps will allow users to store files in Microsoft's datacenters—or its "cloud"—rather than on their own computers. The approach, popularized by Google and others, allows users to access their files anywhere from any device via an Internet connection.
Microsoft Corp.'s Vice President John Kalkman addresses the opportunities for software manufacturers in the emerging "cloud" computing space during a conference last week in Taiwan.
The cloud service will be included free with the new 2010 versions of Office and SharePoint, Microsoft's Web-based collaboration software, also due out on Wednesday. A free consumer version, expected out in June, will compete with Google Docs' free, advertising-supported basic version. Docs also has a paid version with additional business features that costs $50 per user per year.
The energized competition between the two giants will benefit small companies by spurring product innovation, while keeping prices low, says Melissa Webster, content and digital media technologies analyst at research firm IDC. With Google providing free-to-cheap software, Microsoft will be especially motivated "to show the value of its advanced functionality," she says.
Companies of all sizes have been embracing the new "software as a service" model over traditional software in a box because the applications tend to be easy to use and a boon to worker productivity and collaboration, especially in this era of mobility. Such benefits are especially valuable to small companies, which tend to have minimal technology expertise and cash for servers and other big-ticket equipment.
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"A small business typically does not have an IT staff, so the last thing they want to do is stand up [install] an email server or some other kind of server" —or patch computers or worry about data security and backup, says Rajen Sheth, senior product manger for Google Apps. "They would much rather get down to business and let the IT take care of itself."
But when it comes to basic office software, most small businesses have so far only dabbled with cloud services. This is partly because Office, which is widely used in 97% of organizations, according to IDC, retains a powerful grip on workplaces. But it also reflects the fact that cloud offerings, primarily because of limitations the Web has imposed, have not been as feature-rich as users accustomed to desktop software need or expect.
Luckily, faster connections, advances in browser technology and the lubricant of competition are changing that. Office Web Apps will closely mimic the look, feel and functionality of Office desktop software and work seamlessly with it, Microsoft says.
The company expects many customers will want to use both the desktop and cloud versions. "We're really focused on choice and flexibility," says Phil Sorgen, corporate vice president of Microsoft's U.S. Small and Midmarket Solutions and Partners Group. "We want to give our customers the option, based on how they work," to use whichever product they prefer.
The approach could also help Microsoft preserve Office's hold on company PCs by giving businesses the productivity and cost benefits of the cloud, as well as encouragement to keep, and indeed upgrade, their desktop products. That's key to Microsoft, since Office is its No. 2 cash generator after Windows.
And it could provide a bulwark against steady encroachment by Google Docs. More than 2 million businesses work entirely on Docs, and 3,000 more are switching every day, Google says. And millions more use it on an ad-hoc basis to share individual files online, including Office documents.
Of course, Google isn't standing still. It continues to add features to make Docs richer and more akin to desktop software, even as it tries to retain a fast-loading, lightweight "design for the primarily online world, sometimes offline world," Mr. Sheth says. Docs added 60 new bits of functionality in 2008 and 100 in 2009, and the development pace is accelerating, he says. This year, his team made a number of improvements designed to give Office users more of the functionality and look and feel they expect and more tools for real-time collaboration on documents. And it will soon make it possible for users of Office 2003 and 2007 to integrate Docs into their old desktop software using a plug-in made by DocVerse, which it acquired in March.
With these changes, he says, many more small companies can comfortably skip Office upgrades and "move to Google Docs for their primary platform."
http://online.wsj.com/article/SB10001424052748704250104575238823008733234.html?ru=yahoo&mod=yahoo_hs
x-point thanks.
SKS also mentioned that they were looking to do more in the far East. He mentioned doing more business with ACER.
Wouldn't Lenovo be considered "Far East" also?
It looks like the 10 day, 20 day and 50 moving average are all within a dollar or two. Which way will it break?
RWK, thank you.
BTW, it does not look like the sky is falling on Wave just yet.
For all the "lies" SKS is accused of, the stock is acting rather nicely thank you.
x-point, I must of missed something. Can you refresh our memories as to what you are referring to?
On another note, Wave to Present at MDB Capital’s Bright Lights and TechAmerica’s Growth Cap Financial Conferences in San Francisco on May 12 & 13
There could be a lot of reasons for the deal. Maybe there are health problems, or debts, and he needed the cash now. Who knows.
I tend to trust the people in charge. If I did not trust them, I would not be invested in this stock.