HP held a conference call for analysts tonight to talk about the leadership change that we told you about here. Read on for details.
HP held a conference call to introduce Meg Whitman as CEO and Ray Lane as Executive Chairman. Here are some of the highlights.
Strategy
PSG
Both Lane and Whitman confirmed that the initiatives previously announced remain on track. The PC hardware division Personal Systems Group (PSG) may be spun off depending on the results of the strategic analysis currently underway. If HP believes that the business would create more value for customers and investors as a separate entity, then it will be spun off. If not, then it will remain inside HP. Ray Lane mentioned that an outside entity still might be selling HP branded product; Whitman promised an answer by the end of the year.
Autonomy
HP announced its intent to buy the UK firm Autonomy in August. They intend to close that deal by year end.
webOS
Whitman confirmed that HP is looking to extract value from webOS software. It is clear that no change with respect to webOS devices is being contemplated. No more Pres, Veers or Touchpads. No announcement was made concerning potential licencees.
Search Process
Analysts on the call asked how the search process was managed. Since Apotheker was hired 11 months ago, Lane pointed out that they knew the outside candidates well. Lane mentioned that there are people inside HP that will be ready to be CEO but are not ready today, and said that the board wants the next CEO to be an internal hire.
Lane was asked about the timeline of the search process and his answer was revealing. Apotheker missed quarterly results two quarters in a row, and then the announcements on August 18th were very badly handled. The board, over half of whom came on board after Apotheker was hired, gradually lost confidence in his leadership and execution abilities.
Whitman has been an active board member and the board felt comfortable that there was not a better person available for the job.
Great Job Jim, You really did a great job in getting all the essential facts and putting it in understandable Black and White that can be understood by all.
Reading between the lines…No surptise on the Touchpad products remaining buried, it would be to costly to reserecte that corpse. On the PSG end of it (There PC consumer business) I think there trying to stop what may have been one Leo potentially fatal mistakes without it making it look like the screwed up in the first place going along with Leo’s Decesion to initially axe it.
Like you said I wish them the best of luck, I have been buying there Office equipment for the last 12 years and thier PC’s for the last 5. They have really come along way in delivering a quality product.
Thanks, John. I appreciate the compliment. HP has some tough quarters coming up!