During a Q3 2012 earnings call today, CEO Meg Whitman said HP had a "decent"quarter but the company faces multiple headwinds and is in the early stages of a turnaround. She mentioned the following hits and misses...
The Good News...
- "Storage, Networking, IPG and hyperscale servers delivered solid results."
- The 3PAR storage business grew more than 60 percent in the third quarter.
- HP Networking revenues grew 10 percent over Q3 2012.
- HP now has roughly 700 customers running on its CloudSystem platform.
- Live Vault, a cloud component within the Autonomy acquisition, sounds like it's doing well.
Mixed News and Bad News...
- "On a less positive note, the mainstream server market continues to show weakness," she said.
- HP Enterprise Services is "in a multi-year turnaround."
- Also, "Autonomy still requires a great deal of attention, and we've been aggressively working on that business." That said, Whitman did mention Live Vault -- an Autonomy cloud service -- is performing very well.
- On the PC front, Whitman said the "PC market remains weak, and channel inventory is high across the industry ahead of new product releases. Our PC revenue was down 10% year-over-year, driven by this weakness and an aggressive pricing from our competitors."
Plus, Whitman vowed that HP would retain its No. 1 position in the PC market -- essentially taking on Lenovo without mentioning that PC rival by name.
Can Whitman pull that off and fix the list of challenges above? Hmmm...