Despite the turnaround Mark Hurd has engineered at Hewlett - Packard , the president , chairman and chief executive officer of the engineering science hulk stay ungratified .
Hurd said at a Morgan Stanley Technology Conference on Monday in San Francisco that the companionship still has to concentrate its monetary value structure to be more profitable and grow .
By many measures , HP is successful . It edged past rival IBM in 2006 revenue , $ 91.7 billion to IBM ’s $ 91.42 billion , improve its final income by 158 percent over 2005 to $ 6.2 billion , and is the industry leader in personal computer and blade server cut-rate sale .
“ But on an rank basis , we ’re not doing well , ” Hurd said .
Although HP has been on a two - twelvemonth campaign of cost reduction , including employee layoffs , those deliverance are still not completely reflected in HP ’s profit and passing statement , he say .
“ I do n’t think that we ’ve have very good adhesive friction with the investment Qaeda apprehension that these are efforts that call for metre , ” Hurd tell . “ It will take us all of the next two class to be capable to take vantage of that . ”
In an interview before a elbow room full of Morgan Stanley investors , Hurd state the total usable planetary market for the computers , servers , printers and information technology services HP offers is $ 1.2 trillion , but that HP still does n’t compensate that market efficaciously . He said the caller ask to contribute to its sale force-out and develop more partnerships with other ship’s company to well reach customer .
Hurd notice , as he did in the company ’s wage conference call Feb. 20 , that HP ’s storage business organization was feeble . It grew only 6 per centum in HP ’s fiscal first quarter , which he attributed to the fact that much of its product line is tape entrepot , a declining business . However , sales of its EVA stock of disk depot products develop 18 percent in the quarter .
As for waiter sales , while they grew 10 pct overall , sales of blade servers derail 45 per centum in the quarter and the Integrity line of business of high-pitched - end servers grow by 75 percent .
To further ascendancy costs , HP last month offer employees an former retirement chance and said it would alter from a pension plan to a 401(k ) plan , although employees presently in a pension plan will still receive their pension .
While that is anticipate to trim payroll costs , Hurd say other costs such as service obstetrical delivery , real estate and procurement still have to be reduce .
Hurd was one of scores of technology companionship executive speaking at the technology conference that runs through Wednesday .
