Hewlett-Packard is stepping back from the consumer market, discontinuing its line of webOS devices – specifically, phones and its TouchPad – and announcing a possible separation of its Personal Systems Group (PSG) from the company.
It is also in acquisition talks with UK enterprise software company Autonomy, which it said was part of a plan to fundamentally transform HP to focus on business and public sector customers.
“The exploration of alternatives for PSG demonstrates our commitment to enhancing shareholder value and sharpening our strategic and financial focus,” said president and chief executive Leo Apotheker.
In a statement, HP said that could include a full or partial separation of PSG from HP through a spin-off or other transaction within the next two years, allowing it to more effectively compete in the market.
Apotheker said the personal computing market was quickly evolving and HP was focused on improving performance across the business.
“In March we outlined a strategy for HP, built on cloud, solutions and software to address the changing requirements of our customers, shaped heavily by secular market trends that are redefining how technology is consumed and deployed.
"Since then, we have observed the acceleration of these market
trends, which has led us to evaluate additional steps to transform HP to
meet emerging opportunities. We believe the acquisition of Autonomy,
combined with the exploration of alternatives for PSG, would allow HP to
more effectively compete and better execute its focused strategy.”
HP also announced preliminary results for the third fiscal quarter, with revenue of $31.2 billion compared with $30.7 billion a year ago.
It revised down its full year estimate from $129-$130 billion, to $127.2-$127.6 billion.
The PSG reported revenues of approximately $41 billion in the last fiscal year.
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