Along with third quarter 2011 financial results, HP today announced a transformation designed to better position the company for the future by narrowing its focus on its strategic priorities of cloud, solutions, and software.
First, we are making a strategic investment in innovation by way of a recommended all-cash offer for the issued and to be issued shares of Autonomy Corporation plc, a leading global software business headquartered in Cambridge, UK and San Francisco, USA.
Second, we will focus HP on fewer fronts to further concentrate on the markets that offer the best opportunities for profitable growth and shareholder returns. As part of this effort, HP has decided to discontinue webOS hardware device operations. We will explore options for the webOS software platform.
Third, HP has authorized the exploration of strategic alternatives for its Personal Systems Group, which may include, among others, a full or partial separation of PSG from HP through a spin-off or other transaction.
“HP is taking bold, transformative steps to position the company as the leader in the evolving information economy,” said HP CEO Léo Apotheker. “Today's announced plan will allow HP to drive creation of long-term shareholder value through a focus on fewer fronts, thereby improving its ability to execute, invest in innovation and drive a higher-margin business mix."
HP also announced the promotion of John Visentin to become the new head of its Enterprise Services division, which delivers technology infrastructure, applications, and business services. Visentin will report to the CEO.
HP held a live audio webcast of its conference call to review its financial results and the company transformation on Thursday, Aug. 18 at 5 p.m. ET/2 p.m. PT. A replay will be available at http://www.hp.com/investor/2011Q3webcast.
Use of non-GAAP financial information
To supplement HP's consolidated condensed financial statements presented on a GAAP basis, HP provides non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted earnings per share and gross cash. HP also provides forecasts of non-GAAP diluted earnings per share. A reconciliation of the adjustments to GAAP results for this quarter and prior periods is included in the tables below. In addition, an explanation of the ways in which HP management uses these non-GAAP measures to evaluate its business, the substance behind HP management's decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which HP management compensates for those limitations, and the substantive reasons why HP management believes that these non-GAAP measures provide useful information to investors is included under "Use of Non-GAAP Financial Measures" after the tables below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for operating profit, operating margin, net earnings, diluted earnings per share, or cash and cash equivalents prepared in accordance with GAAP.
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