HP is planning to split its PC and printer units, as part of its efforts to focus on the rapidly-growing corporate services market.
The company will separate the two units from corporate hardware and services operations.
Key Dates:
Q3 announced Aug 2014, Q4 announced Nov 2014
HP’s third quarter revenue came to $27.6bn
Its non-GAAP profit for the period was $2.3bn
Its ‘Personal Systems’ division revenue hit $8.6bn, with an operating profit of $346m. HP said desktops revenue was up 8% year on year.
Its ‘Printing’ division fared less well, with both total hardware units and supplies revenue down 5% despite operating profits of $1.03bn
On the back of the rumours it will sell its PC and printer divisions, HP’s shares jumped 6.25% on the New York Stock Exchange
The move is likely to see the existing CEO Meg Whitman to be the CEO of the enterprise business, while being the chairman of the PC and printer business.
The current HP lead independent director Patricia Russo is expected to be named chairman of the enterprise firm and the PC and printer unit would be headed by Dion Weisler as its CEO.
With more than 300,000 employees, HP is still on track to generate $112bn in revenue during the current fiscal year.
HP’s PC and printer businesses generated $55.9bn in revenues during the previous financial year, a little more than $55.7bn combined revenues of its enterprise computing, services and software units.
