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| By Marketwired . |
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| August 20, 2014 04:04 PM EDT |
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PALO ALTO, CA -- (Marketwired) -- 08/20/14 -- HP (NYSE: HPQ)
- Third quarter net revenue of $27.6 billion, up 1% from the prior-year period and up 1% on a constant currency basis
- Third quarter non-GAAP diluted net earnings per share of $0.89, up 3% from the prior-year period, versus the previously provided outlook of $0.86 to $0.90 per share
- Third quarter GAAP diluted net earnings per share of $0.52, down 27% from the prior-year period, versus the previously provided outlook of $0.59 to $0.63 per share
- Third quarter cash flow from operations of $3.6 billion, up 36% from the prior-year period
- Returned $881 million to shareholders in the form of share repurchases and dividends in the third quarter
- Operating company net cash of $4.9 billion, a sequential improvement of $2.2 billion
HP fiscal 2014 third quarter financial performance
Q3 Q3
FY14 FY13 Y/Y
GAAP net revenue ($B) $ 27.6 $ 27.2 1%
GAAP operating margin 5.3% 6.8% (1.5 pts.)
GAAP net earnings ($B) $ 1.0 $ 1.4 (29%)
GAAP diluted net earnings per share $ 0.52 $ 0.71 (27%)
Non-GAAP operating margin 8.5% 8.4% 0.1 pts.
Non-GAAP net earnings ($B) $ 1.70 $ 1.68 1%
Non-GAAP diluted net earnings per share $ 0.89 $ 0.86 3%
Cash flow from operations ($B) $ 3.6 $ 2.7 36%
Information about HP's use of non-GAAP financial information is provided under "Use of non-GAAP financial information" below.
HP today announced financial results for its fiscal 2014 third quarter ended July 31, 2014.
Third quarter net revenue of $27.6 billion was up 1% from the prior-year period and up 1% on a constant currency basis.
Third quarter GAAP diluted net earnings per share (EPS) was $0.52, down from $0.71 in the prior-year period and below its previously provided outlook of $0.59 to $0.63. Third quarter non-GAAP diluted net EPS was $0.89, up from $0.86 in the prior-year period and within its previously provided outlook of $0.86 to $0.90. Third quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax costs of $713 million and $0.37 per diluted share, respectively, related to restructuring charges, the amortization of intangible assets and acquisition-related charges.
"Overall, I'm very pleased with the progress we've made," said Meg Whitman, chairman, president and chief executive officer, HP. "When I look at the way the business is performing, the pipeline of innovation and the daily feedback that I receive from our customers and partners, my confidence in the turnaround grows stronger."
Outlook
For the fiscal 2014 fourth quarter, HP estimates non-GAAP diluted net EPS to be in the range of $1.03 to $1.07 and GAAP diluted net EPS to be in the range of $0.83 to $0.87. Fiscal 2014 fourth quarter non-GAAP diluted net EPS estimates exclude after-tax costs of approximately $0.20 per share, related primarily to restructuring charges and the amortization of intangible assets.
For fiscal 2014, HP estimates non-GAAP diluted net EPS to be in the range of $3.70 to $3.74 and GAAP diluted net EPS to be in the range of $2.75 to $2.79. Fiscal 2014 non-GAAP diluted net EPS estimates exclude after-tax costs of approximately $0.95 per share, related primarily to restructuring charges and the amortization of intangible assets.
Asset management
HP generated $3.6 billion in cash flow from operations in the third quarter, up 36% from the prior-year period. Inventory ended the quarter at $6.2 billion, down 1 day year over year to 27 days. Accounts receivable ended the quarter at $14.2 billion, down 1 day year over year to 46 days. Accounts payable ended the quarter at $15.1 billion, up 8 days year over year to 65 days. HP's dividend payment of $0.16 per share in the third quarter resulted in cash usage of $299 million. HP also utilized $582 million of cash during the quarter to repurchase approximately 17.5 million shares of common stock in the open market. HP exited the quarter with $14.8 billion in gross cash.
Fiscal 2014 third quarter segment results
- Personal Systems revenue was up 12% year over year with a 4.0% operating margin. Commercial revenue increased 14% and Consumer revenue increased 8%. Total units were up 13% with Desktops units up 9% and Notebooks units up 18%.
- Printing revenue was down 4% year over year with an 18.4% operating margin. Total hardware units were down 5% with Commercial hardware units down 2% and Consumer hardware units down 6%. Supplies revenue was down 5%.
- Enterprise Group revenue was up 2% year over year with a 14.0% operating margin. Industry Standard Servers revenue was up 9%, Storage revenue was down 4%, Business Critical Systems revenue was down 18%, Networking revenue was up 4% and Technology Services revenue was down 3%.
- Enterprise Services revenue was down 6% year over year with a 4.1% operating margin. Application and Business Services revenue was down 4% and Infrastructure Technology Outsourcing revenue declined 8%.
- Software revenue was down 5% year over year with a 21.2% operating margin. License revenue was down 16%, support revenue was flat, professional services revenue was down 3% and software-as-a-service (SaaS) revenue was up 8%.
- HP Financial Services revenue was down 3% year over year with a 1% increase in net portfolio assets and a 14% increase in financing volume. The business delivered an operating margin of 9.2%.
More information on HP's earnings, including additional financial analysis and an earnings overview presentation, is available on HP's Investor Relations website at www.hp.com/investor/home.
HP's Q3 FY14 earnings conference call is accessible via an audio webcast at www.hp.com/investor/2014Q3webcast.
About HP
HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. With the broadest technology portfolio spanning printing, personal systems, software, services and IT infrastructure, HP delivers solutions for customers' most complex challenges in every region of the world. More information about HP is available at http://www.hp.com.
Use of non-GAAP financial information
To supplement HP's consolidated condensed financial statements presented on a generally accepted accounting principles (GAAP) basis, HP provides revenue on a constant currency basis, non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted net earnings per share, gross cash, free cash flow, net capital expenditures, net debt, net cash, operating company net debt and operating company net cash. HP also provides forecasts of non-GAAP diluted net earnings per share. A reconciliation of the adjustments to GAAP results for this quarter and prior periods is included in the tables below or elsewhere in the materials accompanying this news release. In addition, an explanation of the ways in which HP's management uses these non-GAAP measures to evaluate its business, the substance behind HP's 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's management compensates for those limitations, and the substantive reasons why HP's 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 revenue, operating profit, operating margin, net earnings, diluted net earnings per share, cash and cash equivalents, cash flow from operations, capital expenditures, or total company debt prepared in accordance with GAAP.
Forward-looking statements
This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of HP may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any projections of revenue, margins, expenses, HP's effective tax rate, net earnings, net earnings per share, cash flows, benefit plan funding, share repurchases, currency exchange rates or other financial items; any projections of the amount, timing or impact of cost savings or restructuring charges; any statements of the plans, strategies and objectives of management for future operations, including the execution of restructuring plans and any resulting cost savings or revenue or profitability improvements; any statements concerning the expected development, performance, market share or competitive performance relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the need to address the many challenges facing HP's businesses; the competitive pressures faced by HP's businesses; risks associated with executing HP's strategy; the impact of macroeconomic and geopolitical trends and events; the need to manage third-party suppliers and the distribution of HP's products and services effectively; the protection of HP's intellectual property assets, including intellectual property licensed from third parties; risks associated with HP's international operations; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its suppliers, customers and partners; the hiring and retention of key employees; integration and other risks associated with business combination and investment transactions; the execution, timing and results of restructuring plans, including estimates and assumptions related to the cost and the anticipated benefits of implementing those plans; the resolution of pending investigations, claims and disputes; and other risks that are described in HP's Annual Report on Form 10-K for the fiscal year ended October 31, 2013, and HP's other filings with the Securities and Exchange Commission, including HP's Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2014. As in prior periods, the financial information set forth in this release, including tax-related items, reflects estimates based on information available at this time. While HP believes these estimates to be reasonable, these amounts could differ materially from actual reported amounts in HP's Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2014. HP assumes no obligation and does not intend to update these forward-looking statements.
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
(In millions except per share amounts)
Three months ended
-------------------------------------
July 31, April 30, July 31,
2014 2014 2013
----------- ----------- -----------
Net revenue $ 27,585 $ 27,309 $ 27,226
Costs and expenses:
Cost of sales 20,974 20,704 20,859
Research and development 887 873 797
Selling, general and administrative 3,388 3,391 3,274
Amortization of intangible assets 227 264 356
Restructuring charges 649 252 81
Acquisition-related charges 2 3 4
----------- ----------- -----------
Total costs and expenses 26,127 25,487 25,371
----------- ----------- -----------
Earnings from operations 1,458 1,822 1,855
Interest and other, net (145) (174) (146)
----------- ----------- -----------
Earnings before taxes 1,313 1,648 1,709
Provision for taxes (328) (375) (319)
----------- ----------- -----------
Net earnings $ 985 $ 1,273 $ 1,390
=========== =========== ===========
Net earnings per share:
Basic $ 0.53 $ 0.67 $ 0.72
Diluted $ 0.52 $ 0.66 $ 0.71
Cash dividends declared per share $ 0.32 $ - $ 0.29
Weighted-average shares used to
compute net earnings per share:
Basic 1,870 1,890 1,929
Diluted 1,899 1,916 1,948
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
(In millions except per share amounts)
Nine months ended
July 31,
------------------------
2014 2013
----------- -----------
Net revenue $ 83,048 $ 83,167
Costs and expenses:
Cost of sales 63,414 63,943
Research and development 2,571 2,406
Selling, general and administrative 9,989 9,916
Amortization of intangible assets 774 1,056
Restructuring charges 1,015 619
Acquisition-related charges 8 19
----------- -----------
Total costs and expenses 77,771 77,959
----------- -----------
Earnings from operations 5,277 5,208
Interest and other, net (482) (518)
----------- -----------
Earnings before taxes 4,795 4,690
Provision for taxes (1,112) (991)
----------- -----------
Net earnings $ 3,683 $ 3,699
=========== ===========
Net earnings per share:
Basic $ 1.95 $ 1.91
Diluted $ 1.93 $ 1.89
Cash dividends declared per share $ 0.61 $ 0.55
Weighted-average shares used to compute net
earnings per share:
Basic 1,889 1,939
Diluted 1,913 1,952
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
ADJUSTMENTS TO GAAP NET EARNINGS, EARNINGS FROM OPERATIONS,
OPERATING MARGIN AND DILUTED NET EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
Three Diluted Three Diluted Three Diluted
months net months net months net
ended earnings ended earnings ended earnings
July 31, per April per July 31, per
2014 share 30, 2014 share 2013 share
-------- -------- -------- -------- -------- --------
GAAP net earnings $ 985 $ 0.52 $ 1,273 $ 0.66 $ 1,390 $ 0.71
Non-GAAP
adjustments:
Amortization of
intangible
assets 227 0.12 264 0.14 356 0.19
Restructuring
charges 649 0.34 252 0.13 81 0.04
Acquisition-
related charges 2 - 3 - 4 -
Adjustments for
taxes (165) (0.09) (101) (0.05) (155) (0.08)
-------- -------- -------- -------- -------- --------
Non-GAAP net
earnings $ 1,698 $ 0.89 $ 1,691 $ 0.88 $ 1,676 $ 0.86
======== ======== ======== ======== ======== ========
GAAP earnings from
operations $ 1,458 $ 1,822 $ 1,855
Non-GAAP
adjustments:
Amortization of
intangible
assets 227 264 356
Restructuring
charges 649 252 81
Acquisition-
related charges 2 3 4
-------- -------- --------
Non-GAAP earnings
from operations $ 2,336 $ 2,341 $ 2,296
======== ======== ========
GAAP operating
margin 5% 7% 7%
Non-GAAP
adjustments 3% 2% 1%
-------- -------- --------
Non-GAAP operating
margin 8% 9% 8%
======== ======== ========
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
ADJUSTMENTS TO GAAP NET EARNINGS, EARNINGS FROM OPERATIONS,
OPERATING MARGIN AND DILUTED NET EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
Nine Diluted Nine Diluted
months net months net
ended earnings ended earnings
July 31, per July 31, per
2014 share 2013 share
-------- -------- -------- --------
GAAP net earnings $ 3,683 $ 1.93 $ 3,699 $ 1.89
Non-GAAP adjustments:
Amortization of intangible assets 774 0.40 1,056 0.54
Restructuring charges 1,015 0.53 619 0.32
Acquisition-related charges 8 - 19 0.01
Adjustments for taxes (349) (0.18) (414) (0.21)
-------- -------- -------- --------
Non-GAAP net earnings $ 5,131 $ 2.68 $ 4,979 $ 2.55
======== ======== ======== ========
GAAP earnings from operations $ 5,277 $ 5,208
Non-GAAP adjustments:
Amortization of intangible assets 774 1,056
Restructuring charges 1,015 619
Acquisition-related charges 8 19
-------- --------
Non-GAAP earnings from operations $ 7,074 $ 6,902
======== ========
GAAP operating margin 6% 6%
Non-GAAP adjustments 3% 2%
-------- --------
Non-GAAP operating margin 9% 8%
======== ========
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In millions)
As of
-------------------------
July 31, October 31,
2014 2013
------------ ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 14,474 $ 12,163
Accounts receivable 14,198 15,876
Financing receivables 3,130 3,144
Inventory 6,249 6,046
Other current assets 11,236 13,135
------------ ------------
Total current assets 49,287 50,364
------------ ------------
Property, plant and equipment 11,434 11,463
Long-term financing receivables and other assets 8,981 9,556
Goodwill and intangible assets 33,468 34,293
------------ ------------
Total assets $ 103,170 $ 105,676
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and short-term borrowings $ 2,705 $ 5,979
Accounts payable 15,141 14,019
Employee compensation and benefits 4,038 4,436
Taxes on earnings 1,228 1,203
Deferred revenue 6,434 6,477
Other accrued liabilities 12,930 13,407
------------ ------------
Total current liabilities 42,476 45,521
------------ ------------
Long-term debt 17,128 16,608
Other liabilities 14,664 15,891
Stockholders' equity:
HP stockholders' equity 28,509 27,269
Non-controlling interests 393 387
------------ ------------
Total stockholders' equity 28,902 27,656
------------ ------------
Total liabilities and stockholders' equity $ 103,170 $ 105,676
============ ============
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)
Three months Nine months
ended ended
July 31, July 31,
2014 2014
------------ ------------
Cash flows from operating activities:
Net earnings $ 985 $ 3,683
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and amortization 1,055 3,259
Stock-based compensation expense 132 432
Provision for doubtful accounts and
inventory 92 204
Restructuring charges 649 1,015
Deferred taxes on earnings (39) (129)
Excess tax benefit from stock-based
compensation (16) (49)
Other, net 51 65
Changes in operating assets and liabilities
(net of acquisitions):
Accounts receivable 72 1,662
Financing receivables 86 340
Inventory (476) (369)
Accounts payable 1,596 1,196
Taxes on earnings 139 292
Restructuring (369) (1,050)
Other assets and liabilities (310) (919)
------------ ------------
Net cash provided by operating
activities 3,647 9,632
------------ ------------
Cash flows from investing activities:
Investment in property, plant and equipment (1,060) (2,897)
Proceeds from sale of property, plant and
equipment 132 702
Purchases of available-for-sale securities
and other investments (556) (1,007)
Maturities and sales of available-for-sale
securities and other investments 680 1,224
Payments made in connection with business
acquisitions - (20)
------------ ------------
Net cash used in investing activities (804) (1,998)
------------ ------------
Cash flows from financing activities:
Issuance of commercial paper and notes
payable, net 26 86
Issuance of debt - 2,005
Payment of debt (2,738) (4,853)
Issuance of common stock under employee
stock plans 112 243
Repurchase of common stock (582) (1,978)
Excess tax benefit from stock-based
compensation 16 49
Cash dividends paid (299) (875)
------------ ------------
Net cash used in financing activities (3,465) (5,323)
------------ ------------
(Decrease) increase in cash and cash equivalents (622) 2,311
Cash and cash equivalents at beginning of period 15,096 12,163
------------ ------------
Cash and cash equivalents at end of period $ 14,474 $ 14,474
============ ============
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)
Three months ended
-------------------------------------
July 31, April 30, July 31,
2014 2014 2013
----------- ----------- -----------
Net revenue:(a)
Personal Systems $ 8,649 $ 8,176 $ 7,733
Printing 5,590 5,834 5,809
----------- ----------- -----------
Total Printing and Personal
Systems Group 14,239 14,010 13,542
Enterprise Group 6,894 6,657 6,764
Enterprise Services 5,590 5,702 5,972
Software 959 971 1,010
HP Financial Services 855 867 879
Corporate Investments 3 6 5
----------- ----------- -----------
Total segments 28,540 28,213 28,172
Elimination of intersegment net
revenue and other (955) (904) (946)
----------- ----------- -----------
Total HP consolidated net revenue $ 27,585 $ 27,309 $ 27,226
=========== =========== ===========
Earnings before taxes:(a)
Personal Systems $ 346 $ 290 $ 238
Printing 1,026 1,140 915
----------- ----------- -----------
Total Printing and Personal
Systems Group 1,372 1,430 1,153
Enterprise Group 966 961 1,023
Enterprise Services 228 144 192
Software 203 186 203
HP Financial Services 79 99 99
Corporate Investments (115) (98) (82)
----------- ----------- -----------
Total segment earnings from
operations 2,733 2,722 2,588
Corporate and unallocated costs and
eliminations (265) (251) (185)
Stock-based compensation expense (132) (130) (107)
Amortization of intangible assets (227) (264) (356)
Restructuring charges (649) (252) (81)
Acquisition-related charges (2) (3) (4)
Interest and other, net (145) (174) (146)
----------- ----------- -----------
Total HP consolidated earnings
before taxes $ 1,313 $ 1,648 $ 1,709
=========== =========== ===========
(a) Effective at the beginning of its first quarter of fiscal 2014, HP
implemented certain organizational changes to align its segment
financial reporting more closely with its current business structure.
These organizational changes include (i) transferring the HP Exstream
business from the Commercial Hardware business unit within the Printing
segment to the Software segment; (ii) transferring the Personal Systems
trade and warranty support business from the Technology Services
business unit within the Enterprise Group segment to the Other business
unit within the Personal Systems segment; (iii) transferring the spare
and replacement parts business supporting the Personal Systems and
Printing segments from the Technology Services business unit within the
Enterprise Group segment to the Other business unit within the Personal
Systems segment and the Commercial Hardware business unit within the
Printing segment, respectively; and (iv) transferring certain cloud-
related incubation activities previously reported in Corporate and
unallocated costs and eliminations and in the Enterprise Group segment
to the Corporate Investments segment. In addition, HP transferred
certain intrasegment eliminations from the Enterprise Services segment
and the Enterprise Group segment to corporate intersegment revenue
eliminations.
HP reflected these changes to its segment information in prior reporting
periods on an as-if basis, which resulted in the transfer of revenue
among the Personal Systems, Printing, the Enterprise Group, Enterprise
Services and Software segments. These changes also resulted in the
transfer of operating profit among the Personal Systems, Printing, the
Enterprise Group, Software and Corporate Investments segments. These
changes had no impact on HP's previously reported consolidated net
revenue, earnings from operations, net earnings or net earnings per
share.
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)
Nine months ended
July 31,
------------------------
2014 2013
----------- -----------
Net revenue:(a)
Personal Systems $ 25,355 $ 23,575
Printing 17,239 17,849
----------- -----------
Total Printing and Personal Systems Group 42,594 41,424
Enterprise Group 20,544 20,506
Enterprise Services 16,887 18,143
Software 2,846 2,928
HP Financial Services 2,592 2,717
Corporate Investments 297 19
----------- -----------
Total segments 85,760 85,737
Elimination of intersegment net revenue and
other (2,712) (2,570)
----------- -----------
Total HP consolidated net revenue $ 83,048 $ 83,167
=========== ===========
Earnings before taxes:(a)
Personal Systems $ 915 $ 715
Printing 3,145 2,852
----------- -----------
Total Printing and Personal Systems Group 4,060 3,567
Enterprise Group 2,933 3,167
Enterprise Services 429 424
Software 534 538
HP Financial Services 279 297
Corporate Investments (92) (230)
----------- -----------
Total segment earnings from operations 8,143 7,763
Corporate and unallocated costs and eliminations (637) (463)
Stock-based compensation expense (432) (398)
Amortization of intangible assets (774) (1,056)
Restructuring charges (1,015) (619)
Acquisition-related charges (8) (19)
Interest and other, net (482) (518)
----------- -----------
Total HP consolidated earnings before taxes $ 4,795 $ 4,690
=========== ===========
(a) Effective at the beginning of its first quarter of fiscal 2014, HP
implemented certain organizational changes to align its segment
financial reporting more closely with its current business structure.
These organizational changes include (i) transferring the HP Exstream
business from the Commercial Hardware business unit within the Printing
segment to the Software segment; (ii) transferring the Personal Systems
trade and warranty support business from the Technology Services
business unit within the Enterprise Group segment to the Other business
unit within the Personal Systems segment; (iii) transferring the spare
and replacement parts business supporting the Personal Systems and
Printing segments from the Technology Services business unit within the
Enterprise Group segment to the Other business unit within the Personal
Systems segment and the Commercial Hardware business unit within the
Printing segment, respectively; and (iv) transferring certain cloud-
related incubation activities previously reported in Corporate and
unallocated costs and eliminations and in the Enterprise Group segment
to the Corporate Investments segment. In addition, HP transferred
certain intrasegment eliminations from the Enterprise Services segment
and the Enterprise Group segment to corporate intersegment revenue
eliminations.
HP reflected these changes to its segment information in prior reporting
periods on an as-if basis, which resulted in the transfer of revenue
among the Personal Systems, Printing, the Enterprise Group, Enterprise
Services and Software segments. These changes also resulted in the
transfer of operating profit among the Personal Systems, Printing, the
Enterprise Group, Software and Corporate Investments segments. These
changes had no impact on HP's previously reported consolidated net
revenue, earnings from operations, net earnings or net earnings per
share.
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT / BUSINESS UNIT INFORMATION
(Unaudited)
(In millions)
Growth
Three months ended rate (%)
--------------------------- ----------
July 31, April 30, July 31,
2014 2014 2013 Q/Q Y/Y
-------- --------- -------- ---- ----
Net revenue:(a)
Printing and Personal Systems
Group
Personal Systems
Notebooks $ 4,359 $ 3,977 $ 3,722 10% 17%
Desktops 3,395 3,343 3,147 2% 8%
Workstations 579 548 537 6% 8%
Other 316 308 327 3% (3%)
-------- --------- --------
Total Personal Systems 8,649 8,176 7,733 6% 12%
-------- --------- --------
Printing
Supplies 3,660 3,866 3,839 (5%) (5%)
Commercial Hardware 1,401 1,402 1,405 0% 0%
Consumer Hardware 529 566 565 (7%) (6%)
-------- --------- --------
Total Printing 5,590 5,834 5,809 (4%) (4%)
-------- --------- --------
Total Printing and
Personal Systems Group 14,239 14,010 13,542 2% 5%
-------- --------- --------
Enterprise Group
Industry Standard Servers 3,097 2,829 2,851 9% 9%
Technology Services 2,096 2,132 2,152 (2%) (3%)
Storage 796 808 833 (1%) (4%)
Networking 672 658 644 2% 4%
Business Critical Systems 233 230 284 1% (18%)
-------- --------- --------
Total Enterprise Group 6,894 6,657 6,764 4% 2%
-------- --------- --------
Enterprise Services
Infrastructure Technology
Outsourcing 3,494 3,597 3,791 (3%) (8%)
Application and Business
Services 2,096 2,105 2,181 0% (4%)
-------- --------- --------
Total Enterprise Services 5,590 5,702 5,972 (2%) (6%)
-------- --------- --------
Software 959 971 1,010 (1%) (5%)
-------- --------- --------
HP Financial Services 855 867 879 (1%) (3%)
-------- --------- --------
Corporate Investments 3 6 5 (50%) (40%)
-------- --------- --------
Total segments 28,540 28,213 28,172 1% 1%
-------- --------- --------
Elimination of intersegment net
revenue and other (955) (904) (946) 6% 1%
-------- --------- --------
Total HP consolidated net
revenue $ 27,585 $ 27,309 $ 27,226 1% 1%
======== ========= ========
(a) Effective at the beginning of its first quarter of fiscal 2014, HP
implemented certain organizational changes to align its segment
financial reporting more closely with its current business structure.
These organizational changes include (i) transferring the HP Exstream
business from the Commercial Hardware business unit within the Printing
segment to the Software segment; (ii) transferring the Personal Systems
trade and warranty support business from the Technology Services
business unit within the Enterprise Group segment to the Other business
unit within the Personal Systems segment; (iii) transferring the spare
and replacement parts business supporting the Personal Systems and
Printing segments from the Technology Services business unit within the
Enterprise Group segment to the Other business unit within the Personal
Systems segment and the Commercial Hardware business unit within the
Printing segment, respectively; and (iv) transferring certain cloud-
related incubation activities previously reported in Corporate and
unallocated costs and eliminations and in the Enterprise Group segment
to the Corporate Investments segment. In addition, HP transferred
certain intrasegment eliminations from the Enterprise Services segment
and the Enterprise Group segment to corporate intersegment revenue
eliminations.
HP reflected these changes to its segment information in prior reporting
periods on an as-if basis, which resulted in the transfer of revenue
among the Personal Systems, Printing, the Enterprise Group, Enterprise
Services and Software segments. These changes had no impact on HP's
previously reported consolidated net revenue, earnings from operations,
net earnings or net earnings per share.
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT / BUSINESS UNIT INFORMATION
(Unaudited)
(In millions)
Nine months ended
July 31,
------------------
2014 2013
-------- --------
Net revenue:(a)
Printing and Personal Systems Group
Personal Systems
Notebooks $ 12,671 $ 11,568
Desktops 10,012 9,571
Workstations 1,660 1,593
Other 1,012 843
-------- --------
Total Personal Systems 25,355 23,575
-------- --------
Printing
Supplies 11,321 11,854
Commercial Hardware 4,150 4,190
Consumer Hardware 1,768 1,805
-------- --------
Total Printing 17,239 17,849
-------- --------
Total Printing and Personal Systems Group 42,594 41,424
-------- --------
Enterprise Group
Industry Standard Servers 9,104 8,651
Technology Services 6,351 6,606
Storage 2,438 2,523
Networking 1,960 1,870
Business Critical Systems 691 856
-------- --------
Total Enterprise Group 20,544 20,506
-------- --------
Enterprise Services
Infrastructure Technology Outsourcing 10,592 11,501
Application and Business Services 6,295 6,642
-------- --------
Total Enterprise Services 16,887 18,143
-------- --------
Software 2,846 2,928
-------- --------
HP Financial Services 2,592 2,717
-------- --------
Corporate Investments 297 19
-------- --------
Total segments 85,760 85,737
-------- --------
Elimination of intersegment net revenue and other (2,712) (2,570)
-------- --------
Total HP consolidated net revenue $ 83,048 $ 83,167
======== ========
(a) Effective at the beginning of its first quarter of fiscal 2014, HP
implemented certain organizational changes to align its segment
financial reporting more closely with its current business structure.
These organizational changes include (i) transferring the HP Exstream
business from the Commercial Hardware business unit within the Printing
segment to the Software segment; (ii) transferring the Personal Systems
trade and warranty support business from the Technology Services
business unit within the Enterprise Group segment to the Other business
unit within the Personal Systems segment; (iii) transferring the spare
and replacement parts business supporting the Personal Systems and
Printing segments from the Technology Services business unit within the
Enterprise Group segment to the Other business unit within the Personal
Systems segment and the Commercial Hardware business unit within the
Printing segment, respectively; and (iv) transferring certain cloud-
related incubation activities previously reported in Corporate and
unallocated costs and eliminations and in the Enterprise Group segment
to the Corporate Investments segment. In addition, HP transferred
certain intrasegment eliminations from the Enterprise Services segment
and the Enterprise Group segment to corporate intersegment revenue
eliminations.
HP reflected these changes to its segment information in prior reporting
periods on an as-if basis, which resulted in the transfer of revenue
among the Personal Systems, Printing, the Enterprise Group, Enterprise
Services and Software segments. These changes had no impact on HP's
previously reported consolidated net revenue, earnings from operations,
net earnings or net earnings per share.
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT OPERATING MARGIN SUMMARY DATA
(Unaudited)
Three months Change in Operating
ended Margin (pts)
------------ ----------------------
July 31,
2014 Q/Q Y/Y
------------ ---------- ----------
Segment operating margin:(a)
Personal Systems 4.0% 0.5 pts 0.9 pts
Printing 18.4% (1.1 pts) 2.6 pts
Printing and Personal Systems Group 9.6% (0.6 pts) 1.1 pts
Enterprise Group 14.0% (0.4 pts) (1.1 pts)
Enterprise Services 4.1% 1.6 pts 0.9 pts
Software 21.2% 2.0 pts 1.1 pts
HP Financial Services 9.2% (2.2 pts) (2.1 pts)
Corporate Investments(b) NM NM NM
Total segments 9.6% 0.0 pts 0.4 pts
(a) Effective at the beginning of its first quarter of fiscal 2014, HP
implemented certain organizational changes to align its segment
financial reporting more closely with its current business structure.
These organizational changes include (i) transferring the HP Exstream
business from the Commercial Hardware business unit within the Printing
segment to the Software segment; (ii) transferring the Personal Systems
trade and warranty support business from the Technology Services
business unit within the Enterprise Group segment to the Other business
unit within the Personal Systems segment; (iii) transferring the spare
and replacement parts business supporting the Personal Systems and
Printing segments from the Technology Services business unit within the
Enterprise Group segment to the Other business unit within the Personal
Systems segment and the Commercial Hardware business unit within the
Printing segment, respectively; and (iv) transferring certain cloud-
related incubation activities previously reported in Corporate and
unallocated costs and eliminations and in the Enterprise Group segment
to the Corporate Investments segment. In addition, HP transferred
certain intrasegment eliminations from the Enterprise Services segment
and the Enterprise Group segment to corporate intersegment revenue
eliminations.
HP reflected these changes to its segment information in prior reporting
periods on an as-if basis, which resulted in the transfer of revenue
among the Personal Systems, Printing, the Enterprise Group, Enterprise
Services and Software segments. These changes also resulted in the
transfer of operating profit among the Personal Systems, Printing, the
Enterprise Group, Software and Corporate Investments segments. These
changes had no impact on HP's previously reported consolidated net
revenue, earnings from operations, net earnings or net earnings per
share.
(b) "NM" represents not meaningful.
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CALCULATION OF DILUTED NET EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
Three months ended
-----------------------------------
July 31, April 30, July 31,
2014 2014 2013
----------- ----------- -----------
Numerator:
GAAP net earnings $ 985 $ 1,273 $ 1,390
=========== =========== ===========
Non-GAAP net earnings $ 1,698 $ 1,691 $ 1,676
=========== =========== ===========
Denominator:
Weighted-average number of shares
outstanding during the reporting
period 1,870 1,890 1,929
Dilutive effect of employee stock
plans(a) 29 26 19
----------- ----------- -----------
Weighted-average number of shares
used to compute diluted net
earnings per share 1,899 1,916 1,948
=========== =========== ===========
GAAP diluted net earnings per share $ 0.52 $ 0.66 $ 0.71
=========== =========== ===========
Non-GAAP diluted net earnings per share $ 0.89 $ 0.88 $ 0.86
=========== =========== ===========
(a) Includes any dilutive effect of outstanding stock options, performance-
based restricted stock units, restricted stock units and restricted
stock.
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CALCULATION OF DILUTED NET EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
Nine months ended
July 31,
-----------------------
2014 2013
----------- -----------
Numerator:
GAAP net earnings $ 3,683 $ 3,699
=========== ===========
Non-GAAP net earnings $ 5,131 $ 4,979
=========== ===========
Denominator:
Weighted-average number of shares outstanding
during the reporting period 1,889 1,939
Dilutive effect of employee stock plans(a) 24 13
----------- -----------
Weighted-average number of shares used to
compute diluted net earnings per share 1,913 1,952
=========== ===========
GAAP diluted net earnings per share $ 1.93 $ 1.89
=========== ===========
Non-GAAP diluted net earnings per share $ 2.68 $ 2.55
=========== ===========
(a) Includes any dilutive effect of outstanding stock options, performance-
based restricted stock units, restricted stock units and restricted
stock.
Use of non-GAAP financial measures
To supplement HP's consolidated condensed financial statements presented on a GAAP basis, HP provides revenue on a constant currency basis, non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted net earnings per share, gross cash, free cash flow, net capital expenditures, net debt, net cash, operating company net debt and operating company net cash. HP also provides forecasts of non-GAAP diluted net earnings per share. These non-GAAP financial measures are not computed in accordance with, or as an alternative to, generally accepted accounting principles in the United States. The GAAP measure most directly comparable to revenue on a constant currency basis is revenue. The GAAP measure most directly comparable to non-GAAP operating profit is earnings from operations. The GAAP measure most directly comparable to non-GAAP operating margin is operating margin. The GAAP measure most directly comparable to non-GAAP net earnings is net earnings. The GAAP measure most directly comparable to non-GAAP diluted net earnings per share is diluted net earnings per share. The GAAP measure most directly comparable to gross cash is cash and cash equivalents. The GAAP measure most directly comparable to free cash flow is cash flow from operations. The GAAP measure most directly comparable to net capital expenditures is capital expenditures. The GAAP measure most directly comparable to net debt and operating company net debt is total company debt. The GAAP measure most directly comparable to net cash and operating company net cash is cash and cash equivalents. Reconciliations of each of these non-GAAP financial measures to GAAP information are included in the tables above or elsewhere in the materials accompanying this news release.
Use and economic substance of non-GAAP financial measures used by HP
Revenue on a constant currency basis assumes no change in the foreign exchange rate from the prior-year period. Non-GAAP operating profit and non-GAAP operating margin are defined to exclude the effects of any restructuring charges, charges relating to the impairment of goodwill and intangible assets, charges relating to the amortization of intangible assets, acquisition-related charges and charges related to the wind-down of HP businesses recorded during the relevant period. Non-GAAP net earnings and non-GAAP diluted net earnings per share consist of net earnings or diluted net earnings per share excluding those same charges. In addition, non-GAAP net earnings and non-GAAP diluted net earnings per share are adjusted by the amount of additional taxes or tax benefit associated with each non-GAAP item. HP's management uses these non-GAAP financial measures for purposes of evaluating HP's historical and prospective financial performance, as well as HP's performance relative to its competitors. HP's management also uses these non-GAAP measures to further its own understanding of HP's segment operating performance. HP believes that excluding the items mentioned above from these non-GAAP financial measures allows HP's management to better understand HP's consolidated financial performance in relation to the operating results of HP's segments, as HP's management does not believe that the excluded items are reflective of ongoing operating results. More specifically, HP's management excludes each of those items mentioned above for the following reasons:
- HP incurs charges relating to the amortization of intangible assets, including acquired research and development projects. Those charges are included in HP's GAAP presentation of earnings from operations, operating margin, net earnings and diluted net earnings per share. Such charges are significantly impacted by the timing and magnitude of HP's acquisitions and any related impairment charges. Consequently, HP excludes these charges for purposes of calculating these non-GAAP measures to facilitate a more meaningful evaluation of HP's current operating performance and comparisons to HP's operating performance in other periods.
- Restructuring charges are costs associated with a formal restructuring plan and are primarily related to (i) employee termination costs and benefits and (ii) costs to vacate duplicative facilities. HP excludes these restructuring costs (and any reversals of charges recorded in prior periods) for purposes of calculating these non-GAAP measures because it believes that these historical costs do not reflect expected future operating expenses and do not contribute to a meaningful evaluation of HP's current operating performance or comparisons to HP's operating performance in other periods.
- HP incurs costs related to its acquisitions. As acquisition-related expenses are inconsistent in amount and frequency and are significantly impacted by the timing and nature of HP's acquisitions, HP believes that eliminating these expenses for purposes of calculating these non-GAAP measures facilitates a more meaningful evaluation of HP's current operating performance and comparisons to HP's operating performance in other periods.
Gross cash is a non-GAAP measure that is defined as cash and cash equivalents plus short-term investments and certain long-term investments that may be liquidated within 90 days pursuant to the terms of existing put options or similar rights. Free cash flow is defined as cash flow from operations less net capital expenditures. Net capital expenditures is defined as investments in property, plant and equipment less proceeds from the sale of property, plant and equipment. HP's management uses gross cash and free cash flow for the purpose of determining the amount of cash available for investment in HP's businesses, funding acquisitions, repurchasing stock and other purposes. HP's management also uses gross cash and free cash flow to evaluate HP's historical and prospective liquidity. Because gross cash includes liquid assets that are not included in GAAP cash and cash equivalents, HP believes that gross cash provides a more accurate and complete assessment of HP's liquidity. Because net capital expenditures includes proceeds from the sale of property, plant and equipment, HP believes that net capital expenditures provides a more accurate and complete assessment of HP's liquidity. Because free cash flow includes the effect of net capital expenditures that are not reflected in GAAP cash flow from operations, HP believes that free cash flow provides a more accurate and complete assessment of HP's liquidity and capital resources.
Total company net debt consists of total debt (including the effects of hedging) less gross cash, which includes cash and cash equivalents, short-term investments, and certain liquid long-term investments. Total company net cash consists of gross cash less total debt. HP Financial Services (HPFS) net debt consists of HPFS debt, which includes primarily intercompany equity that is treated as debt for segment reporting purposes, intercompany debt, and borrowing and funding related activity associated with HPFS and its subsidiaries, less HPFS cash. Total company net debt and total company net cash provide useful information to HP's management about the state of HP's consolidated condensed balance sheet. Operating company net debt is a non-GAAP measure that is defined as total company net debt less HPFS net debt. Operating company net cash is a non-GAAP measure that is defined as total company net cash less HPFS cash less HPFS debt. Operating company net debt and operating company net cash provide additional useful information to HP's management about the state of HP's consolidated condensed balance sheet by providing more transparency into the financial components of the operating company separate from HP's financing business, which has different capital structure requirements and requires much greater leverage to run effectively.
Material limitations associated with use of non-GAAP financial measures
These non-GAAP financial measures have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of HP's results as reported under GAAP. Some of the limitations in relying on these non-GAAP financial measures are:
- Items such as amortization of intangible assets, though not directly affecting HP's cash position, represent the loss in value of intangible assets over time. The expense associated with this loss in value is not included in non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings or non-GAAP diluted net earnings per share, and therefore does not reflect the full economic effect of the loss in value of those intangible assets.
- Items such as restructuring charges that are excluded from non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings and non-GAAP diluted net earnings per share can have a material impact on the equivalent GAAP earnings measure and cash flows.
- HP may not be able to liquidate immediately the short-term and long-term investments included in gross cash, which may limit the usefulness of gross cash as a liquidity measure.
- Other companies may calculate revenue on a constant currency basis, non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted net earnings per share, gross cash, free cash flow, net capital expenditures, net debt, net cash, operating company net debt and operating company net cash differently than HP does, limiting the usefulness of those measures for comparative purposes.
Compensation for limitations associated with use of non-GAAP financial measures
HP compensates for the limitations on its use of non-GAAP financial measures by relying primarily on its GAAP results and using non-GAAP financial measures only supplementally. HP also provides robust and detailed reconciliations of each non-GAAP financial measure to its most directly comparable GAAP measure within this news release and in other written materials that include these non-GAAP financial measures, and HP encourages investors to review carefully those reconciliations.
Usefulness of non-GAAP financial measures to investors
HP believes that providing revenue on a constant currency basis, non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted net earnings per share, gross cash, free cash flow, net capital expenditures, net debt, net cash, operating company net debt and operating company net cash to investors in addition to the related GAAP measures provides investors with greater transparency to the information used by HP's management in its financial and operational decision making and allows investors to see HP's results "through the eyes" of management. HP further believes that providing this information better enables HP's investors to understand HP's operating performance and to evaluate the efficacy of the methodology and information used by HP's management to evaluate and measure such performance. Disclosure of these non-GAAP financial measures also facilitates comparisons of HP's operating performance with the performance of other companies in HP's industry that supplement their GAAP results with non-GAAP financial measures that may be calculated in a similar manner.
© 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP shall not be liable for technical or editorial errors or omissions contained herein.
Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.
@ThingsExpo Stories By Liz McMillan  Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution.
EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components. Dec. 19, 2017 09:45 AM EST Reads: 961 | By Elizabeth White  "Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dec. 19, 2017 09:45 AM EST Reads: 845 | By Elizabeth White  "Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dec. 19, 2017 09:15 AM EST Reads: 1,051 | By Elizabeth White  Large industrial manufacturing organizations are adopting the agile principles of cloud software companies.
The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L; stakeholders. Dec. 19, 2017 08:15 AM EST Reads: 918 | By Elizabeth White  "IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi... Dec. 18, 2017 03:45 PM EST Reads: 2,140 | By Elizabeth White  In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it... Dec. 18, 2017 01:30 PM EST Reads: 2,195 | By Elizabeth White  22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ... Dec. 18, 2017 01:00 PM EST Reads: 3,981 | By Liz McMillan  "Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar... Dec. 17, 2017 04:00 PM EST Reads: 1,118 | By Pat Romanski  Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression.
In th... Dec. 17, 2017 02:00 PM EST Reads: 1,232 | By Elizabeth White  "MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dec. 17, 2017 10:00 AM EST Reads: 1,258 | By Liz McMillan  Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ... Dec. 15, 2017 11:00 AM EST Reads: 2,203 | By Elizabeth White  "There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dec. 14, 2017 04:00 PM EST Reads: 1,400 | By Liz McMillan  SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY.
CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye... Dec. 14, 2017 11:45 AM EST Reads: 1,435 | By Elizabeth White  SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY.
Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms. Dec. 14, 2017 11:00 AM EST Reads: 1,438 | By Pat Romanski  It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems.
In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ... Dec. 13, 2017 02:00 PM EST Reads: 1,238 | By Elizabeth White  WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip... Dec. 13, 2017 11:00 AM EST Reads: 1,340 | By Liz McMillan  A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic... Dec. 11, 2017 11:15 PM EST Reads: 10,202 | By Liz McMillan  SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications. Dec. 10, 2017 07:45 AM EST Reads: 4,056 | By Elizabeth White  Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec... Dec. 8, 2017 07:30 AM EST Reads: 1,292 | By Pat Romanski  To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ... Dec. 7, 2017 08:00 PM EST Reads: 2,876 |
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The impact of emerging technologies has taken the business by storm. Everyone is familiar with Virtual Reality and 360-degree virtual reality. The immersive experience offered by these emerging technologies have replaced the way people shopped, interact and have fun.
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The survival of any business in today’s world is only possible by integrating emerging technologies within the organization. In thi...
Accessing files using traditional VPN software comes at a great cost. In this article we quantify true costs of supporting VPN's for remote access.
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SAP HANA was released as a work in progress. Tenants could leverage the increased speed of the HANA database immediately, but had to wait for the updated SAP S/4HANA applications to be released. Each release has allowed applications to more fully harness HANA, creating new, compelling reasons to migrate for a range of use cases.
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Let's do a visualization exercise. Imagine it's December 31, 2018, and you're ringing in the New Year with your friends and family. You think back on everything that you accomplished in the last year: your company's revenue is through the roof thanks to the success of your product, and you were promoted to Lead Developer. 2019 is poised to be an even bigger year for your company because you have the tools and insight to scale as quickly as demand requires. You're a happy human, and it's not just because of the bubbly in your glass.
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"This all sounds great. But it's just not realistic."
This is what a group of five senior IT executives told me during a workshop I held not long ago. We were working through an exercise on the organizational characteristics necessary to successfully execute a digital transformation, and the group was doing their ‘readout.'
The executives loved everything we discussed and agreed that if such an environment existed, it would make transformation much easier. They just didn't believe it was realistic.
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The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, provided a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to operationalize the intelligence and how to implement a strategy to scale efforts. She pulled from her ex...
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For better or worse, big data has irrevocably altered the digital landscape. The explosion in variety, velocity, volume and value of information presents an abundance of previously unimaginable opportunity. But it also creates a number of challenges that need to be successfully navigated.
This reshaped technical world poses the following question to organizations: do you risk presenting, stale, incorrect or erroneous data to your customers? Because, with 2.5 quintillion bytes of data now being created every day, finding a way to manage and harness such potential is a new experience for everyo...
Cavirin Systems has just announced C2, a SaaS offering designed to bring continuous security assessment and remediation to hybrid environments, containers, and data centers. Cavirin C2 is deployed within Amazon Web Services (AWS) and features a flexible licensing model for easy scalability and clear pay-as-you-go pricing.
Although native to AWS, it also supports assessment and remediation of virtual or container instances within Microsoft Azure, Google Cloud Platform (GCP), or on-premise. By drawing on a comprehensive library of curated industry guidelines, control frameworks, and best practi...
An update to the Web Content Accessibility Guidelines (WCAG) is coming. Did I lose you already? If you're not familiar with WCAG, it's a collection of guidelines that developers, designers and accessibility experts use to help ensure the apps and websites they create are accessible to people with disabilities. The W3C has the latest guidelines published here.
We seem to run this cycle with every new technology that comes along. A good idea with practical applications is born, then both marketers and over-excited users start to declare it is the solution for all or our problems. Compliments of Gartner, we know it generally as “The Hype Cycle”, but each iteration is a little different.
2018’s flavor will be serverless computing, and by 2018, I mean starting now, but going most of next year, you’ll be sick of it. We are already seeing people write such sweeping statements as “The purpose of serverless is no-ops”. And that type of declaratory language...
Decentralization of everything, the great new idea of which the web can’t stop babbling, might still seem a bit utopian if you inspect it closely.
Yes, blockchains are likely to reshape our economy, or a huge part of it, and benefit considerably those who are currently unbanked.
They might also facilitate the creation of rating/reputation systems that are not controlled by any single entity and thus allow people (say Uber drivers who’d like to work for Lyft) to switch employers without having to establish their credibility anew.
They might give users complete control over their assets; prot...
As we end 2017, I’m tired of writing “lecturing” blogs about what organizations should be doing to master data monetization in order to power their business models and achieve digital transformation. While the objective of every organization should be to master big data and data science (artificial intelligence, machine learning, deep learning) to drive “data monetization,” let’s take a breath and have some fun.
My recent ankle surgery afforded me the opportunity to binge watch “Game of Thrones.” As I watched the impending battle between the White Walkers and humanity, I couldn’t help but ...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be looking at some significant engineering investment.
On-demand, serverless computing enables deve...
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