Hp Lops Heads On Bad News

Summary


SAN JOSE, Calif. - High-tech giant Hewlett-Packard Co. posted disappointing third-quarter profits and reduced its current period outlook Thursday, citing costly glitches with a new ordering- processing system and softer-than-expected demand for its server and storage products. HP shares fell 13 percent on the news.

Chief executive Carly Fiorina, who earlier described the problems as "unacceptable," also announced the departure of Peter Blackmore, executive vice president of the company's Customer Solutions group, and two of his lieutenants. Her emotionless memo to employees followed an unusually public vow to change management in the enterprise server and storage systems division.

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Extract


Hp Lops Heads On Bad News

The earnings results, which were released almost a week earlier than planned, obscured HP's near doubling of profits and a 9 percent jump in sales over the same period a year ago. The personal computer, ...

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