HP has announced what it’s describing as a ‘company transformation’.
It will stop producing the TouchPad tablet and webOS phones, admitting that they’ve not met financial targets. The company says it will “continue to explore options to optimize the value of webOS software going forward”.
In addition, HP says it’s looking at “strategic alternatives” for its Personal Systems Group - the laptop and desktop PC part of its business - that could see the PSG spun off from HP.
As well as all this, HP has also announced plans to acquire software company Autonomy for £6 billion. Autonomy, which was founded in 1996, currently works with more than 25,000 organisations worldwide and has around 2,700 employees. HP says this move will accelerate its ability to offer cloud-based solutions and business software. Autonomy will continue to operate as a separate business.
HP’s quarterly results, announced at the same time, showed net revenue of $31.2 billion compared with $30.7 billion one year ago.
Léo Apotheker, HP president and chief executive officer, said “We’re focused on improving performance across the business. HP is taking bold, transformative steps to position the company as a leader in the evolving information economy. Today’s announced plan will allow HP to drive creation of long-term shareholder value through a focus on fewer fronts, thereby improving its ability to execute, invest in innovation and drive a higher-margin business mix.”