HP dropped revenue and headcount, and the executive shuffle went on in the mobile industry last week.
HP announced second quarter net revenue of $27.3 billion was down 1% from the prior-year period and flat on a constant currency basis.
"With the first half of our fiscal year completed, I'm pleased to report that HP's turnaround remains on track," said Meg Whitman, president and chief executive officer, HP. "With each passing quarter, HP is improving its systems, structures and core go-to-market capabilities. We're gradually shaping HP into a more nimble, lower-cost, more customer- and partner-centric company that can successfully compete across a rapidly changing IT landscape."
In May 2012, HP adopted a multi-year restructuring plan designed to simplify business processes, accelerate innovation, lower costs and deliver better results. HP previously estimated that 34,000 positions would be eliminated in connection with the plan. As HP continues to reengineer the workforce to be more competitive and meet its objectives, the previously estimated number of eliminated positions will increase by between 11,000 to 16,000.
HP Financial Services revenue was down 2% year over year with a 2% decrease in net portfolio assets and a 12% increase in financing volume. The business delivered an operating margin of 11.4%.
Personal Systems revenue was up 7% year over year with a 3.5% operating margin. Commercial revenue increased 12% and Consumer revenue declined 2%. Total units were up 10% with Desktops units up 6% and Notebooks units up 6%.
Printing revenue was down 4% year over year with a 19.5% operating margin. Total hardware units were up 1% with Commercial hardware units up 3% and Consumer hardware units flat. Supplies revenue was down 6
Group revenue was down 2% year over year with a 14.4% operating margin. Industry Standard Servers revenue was up 1%, Storage revenue was down 6%, Business Critical Systems revenue was down 14%, Networking revenue was up 6% and Technology Services revenue was down 5%.
Enterprise Services revenue was down 7% year over year with a 2.5% operating margin. Application and Business Services revenue was down 8%, and Infrastructure Technology Outsourcing revenue declined 7%.
Software revenue was flat year over year with a 19.2% operating margin. License revenue was up 8%, support revenue was down 4%, professional services revenue was up 1% and software-as-a-service (SaaS) revenue was up 6%.
CTIA added three new members to its 2014 board of directors, including two substitutions and the addition of a new member. Nokia's Executive Vice President of the North American Market for Networks Rick Corker and Ingram Micro North America Mobility's President Bashar Nejdawi; both will join the board as large supplier representatives, while DoCoMo Pacific's President and CEO, Jonathan Kriegel, will serve as a carrier representative.
Due to the recent acquisition of Nokia's handset division, Corker replaces Nokia, Inc.’s Vice President of Sales and Marketing in the Americas, Matt Rothschild, while Kriegel replaces former DoCoMo Pacific's President and CEO Jay Shedd. Ingram Micro Mobility is a new member company to CTIA.
They will each serve on the board for the remainder of the year.
"Ricky, Bashar and Jonathan are welcomed additions to our board since each has a unique perspective on the issues that are most important to the wireless industry, such as securing more licensed spectrum and enacting sensible and clear wireless user tax policies," said Steve Largent, President and CEO of CTIA.
SAP will acquire SeeWhy, a provider of cloud-based marketing applications serving more than 4,000 top brands and retailers. This addition complements the multichannel ecommerce platform of hybris—a subsidiary of SAP—that will enhance real-time customer engagement across multiple SAP products, optimizing the customer experience and increasing sales across a growing number of delivery channels and touch points.
"The combination of SeeWhy's market-disruptive products with SAP, will allow us to reach new customers, sources of data and markets to continue our growth trajectory," said Scott Silk, CEO, and Charles Nicholls founder, SeeWhy. "Tight integration between supply and demand data will enable us to deliver a world-class shopping experience for every customer across offline and online channels."
Behavioral marketing solutions trigger real-time 1-to-1 marketing campaigns using email, advertising across desktop, mobile and social channels, based on individual customer behaviors. These solutions elevate marketing from irrelevant noise into personal service—extending and differentiating the brand, and stimulating purchase. The solutions are proven to drive increases in conversion and spending, resulting in an average increase in recovery of 18%. Their products deliver return on investment (ROI) that equates to more than $500 million annually in lost sales—for many of the world's leading companies.
The company's patented platform, SeeWhy CORE, uses real-time in-memory processing to calculate the optimized next best action of individual customers, and generate actions across a broad ecosystem of more than 30 top ad, ecommerce, email service providers, web analytics services and social networks, via pre-packaged integrations.
Kony Inc. appointed John R. Joyce as chief financial officer (CFO) and vice chairman. He served in a variety of senior posts during his 30-year career at IBM, which included stints as CFO, head of IBM Global Services and head of IBM’s Asia-Pacific operations.
Following IBM, he served as managing director at SilverLake, a leader in technology investing, and most recently served as the vice chairman and CFO of Silver Spring Networks. He led Silver Spring Networks through a successful S1 and IPO process that culminated in its public offering in 2013 and continues to serve as vice chairman.
“John’s appointment to Kony brings an incredible breadth of financial acumen having successfully managed everything from a recent IPO through to the scale and complexity of IBM,” said Thomas E. Hogan, chief executive officer, Kony. “He will play an important role in all aspects of our expansion by leveraging his experience with software, services and international markets, and his extensive network of clients, partners and suppliers. We could not be more pleased with this game changing addition to our team.”
CA Technologies has named Amit Chatterjee as executive vice president of Enterprise Solutions and Technology Group. He replaces Peter Griffiths, who served the position since 2011 and will be responsible for strategy and execution across the full portfolio of enterprise businesses, from development to commercialization.
Chatterjee brings a 20-year track record of success in technology and software at both high-growth start-ups and global multinationals. Fortune Magazine named him “Top 40 Under 40” in 2010, and Ernst & Young named him as “Entrepreneur of the Year – Venture Capital” in 2011.
His experience includes: the founder and CEO of Hara, a cloud-based, Software-as-a-Service company; senior executive positions at SAP, including senior vice president, Business User Development; providing management counsel to high-tech and early-stage companies while at McKinsey.