HP CEO Says Intel, Microsoft Now Competitors

When your partners become your competitors, it changes the game. But is HP really blaming Microsoft and Intel for flat revenue?

At its 2013 Securities Analyst Meeting, the companyEUs leadership team provided an update on its progress executing against its turnaround plan and future strategy. HP president and CEO Meg Whitman described the past year as a EUfix and rebuildEU period, and insisted the multi-year turnaround is on track.

As evidence, the company has met or exceeded quarterly non-GAAP diluted earnings per share outlook since the turnaround plan began. HP said in August that it expects free cash flow to approach $8 billion by the end of fiscal year 2013.

WhatEUs more, WhitmanEUs team has reduced operating company net debt by almost $8 billion over the past 12 months and recommitted to smarter innovation with research and development spending expected to exceed $3 billion in fiscal 2013.

EUWhile there is a lot more work to be done, I am confident about the progress we are making,EU said Whitman. EUWeEUre producing tangible results, strengthening our balance sheet and delivering innovative products across all our key segments. We are implementing the changes needed to support our multi-year turnaround journey, reaffirm HPEUs leadership position, and create enduring value for customers as well as for our shareholders.EU

Blaming Microsoft

While the company faces a challenging macro environment, shifting market forces and a rapidly changing competitive landscape, Whitman emphasized that the company has the right leadership team in place to advance its strategy, drive innovation across the business and improve its go-to-market execution. Whitman reiterated that she expects HPEUs revenues to grow in line with gross domestic product over the long term.

Nevertheless, with pockets of growth helping to offset continuing challenges in the macro environment and weak public sector spending, HP expects the year-over-year revenue decline in fiscal 2014 will...

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