Forum Views ()
Forum Replies ()
Read more with google mobile :
Dell and HP shake off slowdown fears
|
Edition:
U.S.
Article
Comments (2)
Save
Email
Print
Reprints
Most Popular
Most Shared
Facebook's 4 Big Rivals in Location-Based Technology
19 Aug 2010
New York Haitians wary of Wyclef Jean president bid
19 Aug 2010
Scientists Map Massive North Atlantic Garbage Patch
19 Aug 2010
Verizon iPad App: A Closer Look
19 Aug 2010
Facebook Places: What You Need To Know
19 Aug 2010
Police bust Paris "booby" trap gang
18 Aug 2010
Australia faces prospect of minority government
| Video
2:16am EDT
Google CEO Exposes Dark Side of Social Networking
18 Aug 2010
Aerosmith's Steven Tyler falls off stage again
18 Aug 2010
North Korea says consensus with China on nuclear talks
19 Aug 2010
Facebook's 4 Big Rivals in Location-Based Technology
19 Aug 2010
Best of Gamescom
19 Aug 2010
Facebook Places: What You Need To Know
19 Aug 2010
Google CEO Exposes Dark Side of Social Networking
18 Aug 2010
Canadian police find bears guarding pot crop
19 Aug 2010
Pesticides tied to ADHD in children in U.S. study
17 May 2010
Police bust Paris "booby" trap gang
18 Aug 2010
North Korea says consensus with China on nuclear talks
19 Aug 2010
"Dilmaboy" and Twitter: Brazil election goes online
19 Aug 2010
U.S. assures Israel nuclear Iran not imminent: report
1:48am EDT
Dell and HP shake off slowdown fears
Digg This
Tweet This
Share on LinkedIn
Share on Facebook
Related News
Interview: Seagate sees prices slipping in September
Thu, Aug 19 2010
Related Topics
Technology »
iPad »
Hot Stocks »
Asian Markets »
A logo of HP is seen outside Hewlett-Packard Belgian headquarters in Diegem, near Brussels, January 12, 2010.
Credit: Reuters/Thierry Roge
By Gabriel Madway and Alexei Oreskovic
SAN FRANCISCO |
Thu Aug 19, 2010 8:44pm EDT
SAN FRANCISCO (Reuters) - Dell Inc and Hewlett-Packard Co dismissed worries about weakening technology demand, reporting broad-based strength from corporate customers and only hints of weakness from consumers.
Both faced questions on Thursday about the strength of the recovery in spending on technology, after Cisco Systems Inc CEO John Chambers' warned last week about "unusual uncertainty" in the global economy.
Analysts said fears persisted about the strength of any recovery in consumer spending, as growth moderates in Europe and China as well as in the United States.
But executives from the two largest U.S. personal computer makers waved off such fears, even as shares of Dell fell 3 percent after it posted slightly weaker-than-expected growth margins and HP fell about 1 percent.
"We saw better-than-normal quarterly seasonality, as well as good balanced performance across all of our three regions," said Cathie Lesjak, HP's interim chief executive, on a conference call with the media.
Lesjak also fielded queries on a successor for former CEO Mark Hurd -- who stunned Wall Street by resigning two weeks ago over expense account inaccuracies linked to a female marketing contractor.
Though Hurd's exit has proved to be messy for the company, HP is doing its best to move on, naming an executive headhunting firm on Wednesday to lead the search for a new CEO. The company will consider both internal and external candidates.
Lesjak said HP is "looking forward, not back" and reiterated that shareholders are behind the company. She also suggested HP was not looking for major change in a new leader.
"When you have a winning strategy, I don't see the motivation to change it," she said.
It is unclear whether HP will go for an established technology veteran, or try to snag up-and-coming talent -- as it did in 2005 with former NCR chief Hurd, who is credited with reviving the company's fortunes.
Whatever the case, Wall Street will be closely monitoring the process. Hurd was lauded by investors for his cost-cutting, but the next CEO of the world's top technology company by revenue will be expected to ramp up growth -- no easy task for a company its size.
"Looking ahead, they're going to start running against tougher comparisons and potential currency pressures, so we're cautiously optimistic for the second half of the year," said Gartner analyst Martin Reynolds. "Although there are troubling signs, we think the technology industry will remain robust."
A DOMINANT FORCE
HP is a dominant presence in a number of technology markets, from PCs and printers to services and servers, and is a bellwether for spending in the sector. Its results on Thursday pointed to solid -- if unremarkable -- growth.
HP had reported preliminary results back on August 6 -- when it also announced Hurd's stunning departure -- so Thursday's numbers had not been expected to move its stock, which has fallen 12 percent since Hurd resigned.
HP said earnings rose 6 percent as expected, helped by strength in servers and personal computers.
Storage and server revenue rose 19 percent, while PC revenue rose 17 percent and sales in the printing group climbed 5 percent. Lesjak did not point to any particular weakness in the market, other than in consumer notebooks.
"Europe has held up well and the printing group is skewing toward commercial versus consumer, which is a positive. They also showed solid progress in networking, which is a key segment we're watching in the battle against Cisco," said Morningstar analyst Michael Holt.
Dell Chief Financial Officer Brian Gladden said the corporate refresh cycle was proceeding as forecast, adding he expects component costs to start to come down in the fiscal third and fourth quarters.
Dell beat Wall Street's profit and revenue estimates, and said it expected a continued pick-up in demand for PCs from corporate customers. But the company's gross profit margin lagged Wall Street expectations and its shares fell in after-hours trading.
Dell said it expected demand for PCs among corporate customers to continue for the "next several" quarters. It said it expects "seasonal improvements" in the third quarter, thanks to sales to the federal government and business customers, with a resulting "pick-up in the low single digits."
"This is a pretty stretched-out cycle and we think it'll continue for several quarters," Gladden said in an interview with Reuters. For the fiscal second quarter, "commercial growth was really the key for us, servers, networking systems, storage, services. That was up about 43 percent."
Shares of Round Rock, Texas-based Dell, which are down roughly 31 percent since April, fell 2.4 percent to $11.75 in extended trading. HP closed at $40.76 on the New York Stock Exchange, and dropped to $40.39 after hours.
(Reporting by Gabriel Madway and Alexei Oreskovic; Editing by Edwin Chan and Richard Chang)
Technology
iPad
Hot Stocks
Asian Markets
Comments
See All Comments (2) | Post Comment
Aug 19, 2010 10:40pm EDT
20 million unemployed and they say everything is hunky dory? Shame!@
STORYBURNthere
Report As Abusive
Aug 20, 2010 1:29am EDT
i’not sure what they clainded will be come into ,althoungh i am used to using HP PC for working .
klak
Report As Abusive
See All Comments (2)
Add a Comment
*We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters.
© Copyright 2010 Thomson Reuters
Editorial Editions:
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
United States
Reuters
Contact Us
Advertise With Us
Help
Journalism Handbook
Archive
Site Index
Video Index
Reader Feedback
Mobile
Newsletters
RSS
Podcasts
Widgets
Your View
Analyst Research
Thomson Reuters
Copyright
Disclaimer
Privacy
Professional Products
Professional Products Support
Financial Products
About Thomson Reuters
Careers
Online Products
Acquisitions Monthly
Buyouts
Venture Capital Journal
International Financing Review
Project Finance International
PEhub.com
PE Week
FindLaw
Reuters on Facebook
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.
Other News on Friday, 20 August 2010 Draft talks invite sees Mideast deal in one year
|
Intel to buy McAfee as it eyes wireless market
US jobless claims jump to 500,000; nine-month high
Mexicans mourn mayor, government vows crackdown
|
Oakland Catholic Church Sued For Late Firing Of Pedophile Priest
Cholera surges in parts of the world: WHO
Newsweek Magazine Ranks Indian PM Atop Global Leader List
Australia's Labor neck-and-neck with opposition: paper
|
More Americans say Obama is Muslim
Disney Sends Muslim Employee Home For Wearing Headscarf
Swann double checks Pakistan's progress
Obama Backs U.N. Probe On Rights Violations In Myanmar
Study: Chinese Medicine Shown To Diminish Chemotherapy Side Effects
Eminem And Rihanna Spend Fifth Week At #1 On Billboard Hot 100
Attack on military police kills 7 in Xinjiang, China
|
Groups Protest NextEra's Nuclear Plant License Renewal
"ANTM" Getting Fashion Makeover, Recruits Cavalli, Posen As Guest Judges
Keri Hilson Reaches "Breaking Point" On New Album
Mumified Fetuses From 1930s Discovered In L.A. Basement
Attack on military police kills 7 in Xinjiang, China
Mother claims child died due to BP refinery pollution
U.S. and Pakistan warn of militant plots over floods
Last US combat brigade leaves Iraq
Pakistan calls for aid 'now' ahead of UN meet
Thais to rule on suspected arms dealer extradition
Thailand's 'Red Shirt' lawmakers in court
Plane that crashed in China is N.Korean: Xinhua
HP profit rises on strength in servers and PCs
|
US-ENTERTAINMENT Summary
Dell beats revenue targets as profit margin lags
|
Cameron Diaz ranked most dangerous Web celeb: study
|
Eminem set to lead U.S. album chart for sixth week
Cameron Diaz ranked most dangerous Web celeb: study
BofA to test retail payments with cell phones
|
Sony unit bidding for Taiwan cable channel, reports say
Armless man plays piano with toes to win hearts in China
New buzz word 'vuvuzela' earns a place in English dictionary
By Toutatis! Asterix McDonald's ad irks French
A Minute With: Emma Thompson as "Nanny McPhee"
U2 postpones Spanish show due to general strike
Survey reveals best Europe airport buys
Oakland Catholic Church Sued For Late Firing Of Pedophile Priest
Bobby Fischer Paternity Case Settled, Filipino Girl Not His Daughter
Man Racks Up $1 Million In PayPal Charges Over Phishing Attack
North Korean Pilot Defecting To Russia Crashes In China
Homeless NJ Man Discovered Living In Library Basement
Bangladesh Acknowledges Sex Workers As Professionals
John Lennons 1971 Letter to Aspiring British Folk Singer Arrives 34 years Late
Cameron Diaz ranked most dangerous Web celeb: study
|
Anti-War Protester Charged After Attacking Sen. Levin With Pie
Smoking still too common in movies, CDC says
|
Sex Kills: Young Couple Stoned To Death For Having An Affair
9-Year-Old Boy, Nearly Abducted, Fights Off Attacker With Skateboard
Eminem rules Hot 100 singles chart for fifth week
|
Book aims to redefine Charlie Chan for Asian-Americans
|
Eminem set to lead U.S. album chart for sixth week
|
US-TECH Summary
Cameron Diaz hot bait for online traps
Intel to buy McAfee as it eyes wireless market
'India proposes formula to break BlackBerry logjam'
Google doubles Germans' opt-out deadline for Street View
Cellphones help Cambodian students -- to cheat
India testing ways to access BlackBerry emails
"Dilmaboy" and Twitter: Brazil election goes online
Al-Qaeda claims attack on Iraq army recruits
France defends Roma crackdown amid fresh expulsions
North Korea says consensus with China on nuclear talks
|
Partner says BP hiding oil spill documents
US Calls Bhopal Issue Closed, Froman Explains His Ahluwalia Remarks T
Bharti India CEO: Blackberry solution has to come from RIM
US assures Israel on Iran's A-bomb plans
Pentagon Rejects Talks With WikiLeaks
World powers aim to open Mideast talks next month
|
Key Berlusconi ally seeks early poll
More Americans say Obama is Muslim
Sharp to cut LCD panel production: report
New Season Of TLCs Four Weddings Premieres In September
U.S. assures Israel nuclear Iran not imminent
Havana harassing hunger striker's mother
Pakistan to clamp down on Islamist militant charities
|
Panasonic to lift China plasma plant capacity: report
U.N. Describes Pakistans Flood As "Slow Motion" Tsunami
U.S. Confirms Iraqi Mission Now Known As "New Dawn"
Pentagon eyes technology to increase efficiency
U.S. assures Israel nuclear Iran not imminent: report
|
Stocks Tumble Again Over Jump In Jobless Claims, Manufacturing Slump
Thai court rules to extradite Russian arms dealer
|
TSA Halts, Holds AA Plane At San Francisco Airport Over Phone Threat
Mexicans mourn mayor, government vows crackdown
|
Australia faces prospect of minority government
|
BofA and Visa to test cell phone payments
Afghan refugees homeless again in Pakistan floods
Wyclef Jean not on Haiti candidates list: source
|
People launches delayed iPad app
Four missing after fishing boat capsizes in China
Dell beats revenue targets as profit margin lags
World powers aim to open Mideast talks next month
World urged to act on Pakistan or risk rebel rise
Ahmadinejad says Iran ready for nuclear talks: report
Indie film makers lead Philippine cinema resurgence
Dell profit climbs on surging business computer sales
Afghan insurgent leader captured; US troop killed
Thai court grants alleged arms dealer extradition
Thai court rules to extradite Russian arms dealer
Factbox
Japan tells ships to be more vigilant in Hormuz Strait
Pakistan seeks IMF loan restructuring after floods
Gay marriage surprise issue in Australian election
Pentagon eyes technology to increase efficiency
|
Seoul wants apology before nuclear talks resume
Britain bids to save silent Hitchcock thrillers
Bharti India CEO: Blackberry solution has to come from RIM
|
Australia faces prospect of minority government
Panasonic to lift China plasma plant capacity: report
|
New skyscraper rises at Ground Zero, amid mosque flap
China: two suspects in Xinjiang blast, one dead
Lady Gaga to steal Britney Spears' Twitter crown
|
Brotherhood TV series angers Egypt Islamists
Dell and HP shake off slowdown fears
|
Director Barenboim wants classical music for the masses
"Expendables" to fend off "Nanny", "Vampires"
Israel, Palestinians to resume direct talks: report
Wyclef awaits word on run for Haitian presidency
Sharp to cut LCD panel production: report
|
People launches delayed iPad app
|
Lady Gaga to steal Britney Spears' Twitter crown
Thais to rule on US bid to extradite arms dealer
Ricky Martin memoir to talk fame and sexuality
Global minimum and maximum temperatures
Book aims to redefine Charlie Chan for Asian-Americans
Jetliner grounded in San Francisco after threat
S.Korea July crude imports up 5.5 pct yr/yr
Vacation time for the president
Seoul shares end down; econ concerns weigh
Obama a Muslim? Rumors gain steam, defying facts
Thais to rule on suspected arms dealer extradition
China's Internet access 'matches' rich world
Pakistani c.bank buys 17.7 bln rupees of govt paper
World Bank: Philippine farm policy deepens poverty
CORRECTED
Lady Gaga to steal Britney Spears' Twitter crown
|
PAKISTAN
Expendables to fend off Nanny, Vampires
|
Third year of shortfall seen for Taiwan budget
Ricky Martin memoir to talk fame and sexuality
|
NZ credit card billings fall in July
Neil Patrick Harris on Emmys, Prop 8 and Lost
|
Friday night TV aims to shake off lame duck status
|
Seoul shares retreat on U.S. econ worries
France cuts 2011 growth forecast to 2%
Clinton invites Israel, Palestinians to September 2 talks
|
EU says ban on seal goods in place, with exceptions
Executive Steps Down In Apple-Supplier Kickback Investigation
South Africa unions and gov't talk on public workers' strike
|
Russia 'has no plans to import grain this year'
MSNBC Opts Not To Air Liberal Ad Against Target
Russia extends military presence in Armenia
Federal Appeals Court: Secretly Made Recordings Don't Violate Wiretap Law
EU ban on seal goods imports in place, with exceptions
Last Arizona Prison Escapee Apprehended At Campground
Scientists challenge US optimism on oil spill damage
Iran says might halt high-level uranium enrichment
|
France defies critics to push on with Roma expulsions
"Real Housewives Of Atlanta" Returning For 3rd Season With New Faces
Iraq's rival parties resume government coalition talks
|
Ambassadors Letter Suggests Obama Ignored Indias Concerns
U.S. officials discussed Iran sanctions with Turkey
|
Madonna's Material Girl Teens Clothing Line Sued
Spencer Pratt To Write A Tell-All Book About Heidi Montag
Libya keeps quiet one year after Lockerbie release
|
U.S. Expert: One Year Before Iran Can Prepare Nuclear Bomb
Low Exposure To Cigarette Smoke Causes Cell Damage
Britain warns Libya not to mark Megrahi release, a year on
N.Korea joins Facebook after Twitter propaganda
'Bold plan' for Mekong area rail link approved
Thais rule to extradite Russian arms suspect to US
China to relocate hundreds after mudslide
9/11 family members divided over mosque near WTC
La. scientist's oysters safe from oil, but pricey
Taiwan claims disputed islets in Japan, US drill
India sees solution on BlackBerry emails next week: source
|
Arizona fugitive and fiancee arrested at campsite
Amnesty urges release of Indonesian activists
Dr. Laura's dinner with gay, black friends
Kennedy favors civilian courts in terrorism cases
Google to hire 200 in Ireland
|
US woes weigh on Asian stock markets
Phil Spector documentary gets OK from killer's son
S.Korean pastor arrested over visit to North
S.Korea's KNOC makes hostile offer for UK oil firm
Pakistan likely to seek lower IMF targets after floods
Pakistani stocks, rupee flat; o/n rates up
Asia Fuel Oil-Taiwan's CPC seeks Oct LSFO
Japan finance minister watching forex 'with interest'
Japan urges China to boost rare earth exports
China's Ansteel may scrap US steel deal
Indonesia palm oil giant defends record
US investor Soros buys stake in India stock exchange
Dr. Laura's dinner with gay, black friends
|
Phil Spector documentary gets OK from killer's son
|
Expendables to fend off Nanny, Vampires
|
New film explores the decline in female rappers
|
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights