HP storage, server executives dismissed after poor results
HP storage, server executives dismissed after poor results
Hewlett-Packard has given its top enterprise server and storage executives the push after the pair presided over a US$208 million Q3 operating loss in the division.
Peter Blackmore and Jim Milton, who were both senior Compaq executives before HP acquired Compaq two years ago, have paid the price for the company failing to reach its earnings targets, news of which caused HP's shares to nosedive by 16 percent.
HP Chairman and CEO Carly Fiorina, barely disguised her anger at the poor showing.
"Although we are satisfied with our performance in Personal Systems, Imaging and Printing, Software and Services, these solid results were overshadowed by unacceptable execution in Enterprise Servers and Storage. We therefore are making immediate management changes. We are also accelerating our margin improvement plans in this business. With these changes, we expect our server and storage business to return to profitability in the fourth quarter," she said.
HP's personal systems revenue rose by 19 percent, with imaging and printing recording a healthy 8 percent increase, and servers and software showing increases of 12 and 17 percent respectively. Meanwhile, the enterprise servers and storage posted a 5 percent revenue decline.
HP did not publicly announce who would replace the executives, but according to company insiders, the current executive vice president and chief marketing officer, Mike Winkler will replace Blackmore, with Jack Novia, who was senior vice president and general manager of the HP Technology Solutions Group, to replace Milton.
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