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Hewlett-Packard has seen its second-quarter profits rise 51 percent after a big turnaround

With help from surging laptop sales and profits exceeding even the most generous forecasts from Wall Street, Hewlett-Packard is on another comeback.  Higher revenue, cost cutting and significant gains have helped contribute to the turn around that HP, the world's second-biggest PC maker, has seen in its latest quarter.  HP has several ways that it is trying to cut corners to save money.  The first method is never a popular one: job cuts.  The company is currently around halfway done with its proposed job cuts of around 15,000 employees.  Another way is that it will begin limiting the number of sites that store the company's crucial business data. The San Jose Mercury News reports:

There's "dramatic improvement in almost all of HP's businesses,'' Shaw said Tuesday after HP announced its quarterly earnings. HP reported net income of $1.5 billion on revenue that rose 5 percent year-over-year to $22.6 billion. Excluding one-time expenses, earnings were 54 cents a share -- beating analysts' expectations by 5 cents a share.

Analysts were skeptical when Mark Hurd said that he aimed to stabilize the company when he became the new CEO after Carly Fiorina was ousted.  So far, it looks like he is on the right track.

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By Samus on 5/18/2006 5:33:58 AM , Rating: 5
Hmm, HP slowly creeping up on Dell in the desktop/notebook market...I wonder what could be the reason for that?

By HPTech on 5/18/2006 5:58:49 AM , Rating: 3
Yup. Nail-on-head moment.

By Targon on 5/18/2006 7:24:39 AM , Rating: 2
Could it be related to providing both AMD and Intel based machines? AMD has been gaining market share across the board, not just in servers, so it's a definate possibility.

By vision33r on 5/18/2006 9:37:49 AM , Rating: 3
Right, HP is selling AMD Operton servers like hotcakes. We switched completely over to AMD on our servers because of price and performance. Especially the 2-4 way Opertrons.

Dell is losing marketshare because they're server line sucks and their desktop/laptop line also don't carry AMD.

The new HP management is definitely better than that idiot Fiorina.

By Phynaz on 5/18/2006 10:09:41 AM , Rating: 2
That idiot walked away with a check for $42M for getting fired.

How much do you make?

By THEREALJMAN73 on 5/18/2006 10:13:49 AM , Rating: 2
Just because they have money doesn't make them smart...

Just lucky.

By Phynaz on 5/18/2006 10:18:43 AM , Rating: 2
You don't get to be the CEO of Lucent and HP by being lucky.

By TomZ on 5/18/2006 10:25:07 AM , Rating: 2
I don't think she was ever the CEO of Lucent.

By Master Kenobi on 5/18/2006 10:51:21 AM , Rating: 3
She wasn't. She only made it to president of Lucent’s Global Service Provider Business. And an Account executive at AT&T Prior to Lucent's spinoff.

By dgingeri on 5/18/2006 10:44:41 AM , Rating: 2
yes, they do. CEO's are frequently idiots who just got there because they had money to start with (family money) and stayed rich simply because the boards of major companies are full of 'old money' people who just keep the cycle going. Exceptions happen, but are very few and far between. the truly smart/ successful CEO's are the ones who started the companies from the ground up, like Steve Jobs and Bill Gates. They started with little to nothing and built their companies up to super power status. recent Lucent and HP CEO's were rich brats that kept their mouths shut and did what the board told them to do. They made few decision on their own, and flubbed those, nearly destroying the companies. the 'old money' types rarely know what drives business and are frequently out of touch with the real world. Worldcom, Qwest, and Enron are perfect examples of this. I have seen far, far too many businesses run into the ground because some idiot got to the top spot due to family influence and ran the company into the ground because they knew nothing about how to run a company. the working class and low level white collar workers pay the price for it too frequently.

By oMeSSiaHo on 5/18/2006 10:55:06 AM , Rating: 2
I sell almost all HP desktops because of AMD. In fact we only cary two Intel based HP computers in our store. I sell a ton of HP laptops because they use both Core/Centrino and Turions. You can easily grab a Turion ML-34, 1gig RAM, 100HDD laptop for less then $900. I still sell Core/Centrino to customers who want the best battery life but there are so few it dosent really matter. The only really downside I can see with HP is all the crappy software they preinstall

By MarioC on 5/18/2006 2:55:49 PM , Rating: 2
Just as an aside, I've done some research previously on Bill Gates, and as it turns out, his family was already super-wealthy. His father was a very well off laywer from a Seattle law firm (I live in Seattle). He had the contacts and the connections. If fact, his father helped him get funding from all over for Microsoft. So I would say that Bill Gates had a lot of help when creating his company.

Not bashing you or anything, just an aside!

By Zoomer on 5/19/2006 7:16:15 AM , Rating: 2
Dave Orton, CEO of ATi, CEO of the former artx.

By PLaYaHaTeD on 5/18/2006 12:19:15 PM , Rating: 2
She must be a really good lay.

By retrospooty on 5/18/2006 10:58:13 AM , Rating: 1
Oh please... Just because she wasnt the best CEO, and made mistakes doesnt make her an idiot... Just the wrong person for the job at the wrong time.

By Aenslead on 5/18/2006 2:56:46 PM , Rating: 2
Still an idiot for not knowing the place and time to do things right.

Mark Who (Good for HP)
By GTMan on 5/18/2006 4:31:04 PM , Rating: 2
When you have a CEO like Carly Fiorina who seems to spend most of her time promoting herself you end up with a company in a mess. I think Carly had nothing going on behind her facade.

This new guy (whose name most people probably don't know) seems to be concentrating on doing his job. Good for him.

RE: Mark Who (Good for HP)
By shane11 on 5/18/2006 8:03:38 PM , Rating: 2
Doesn't make me feel good talking bad about my former CEO. It wasn't c;ear where and how carly ,essed up then. It's only after Mark Hurd, the new CEO took over that we realise Carly was far too ahead with her vision. She wanted to do too many things at a time. But she didnt have a clear cut vision and was bad in executing her ideas... She would've been better a PR head then a CEo of a Technolgy company.. She love the limelight!! And that's her fault .. Good for HP and for her. HP was not where she belong.

RE: Mark Who (Good for HP)
By Zoomer on 5/19/2006 7:20:31 AM , Rating: 2
I knew she was trouble the moment news broke.

By mrk on 5/18/2006 11:56:12 AM , Rating: 2
My pally owns pvp with an HP!

good notebooks
By kaborka on 5/18/2006 1:43:32 PM , Rating: 2
I've been quite happy with my Presario Sempron nb. Excellent value for cheap.

HP comeback
By crystal clear on 5/18/06, Rating: 0
"I mean, if you wanna break down someone's door, why don't you start with AT&T, for God sakes? They make your amazing phone unusable as a phone!" -- Jon Stewart on Apple and the iPhone
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