Hewlett Packard drops plans for acquisition of PricewaterhouseCoopersHewlett-Packard badly missed expectations for its fourth fiscal quarter, and has decided against acquiring PricewaterhouseCoopers' consulting business.
HP reported net income of $US922 million, or 41 cents per share excluding one-time items, for the quarter ending October 31. The consensus from 14 analysts polled by First Call/Thomson Financial was the company would post earnings of 52 cents per share.
Including one-time items, the company achieved earnings of 45 cents per share. This compares with earnings of 36 cents per share in last year's Q4.
For the fourth quarter, HP reported net revenue of $13.3 billion, up 17 per cent from last year's $11.4 billion. Net revenue rose 15 per cent for the full fiscal year, from $42.3 billion to $48.8 billion.
For the full fiscal year, HP reported net income of $3.6 billion, or $1.73 per share.
Regarding the PwC plan, Carly Fiorina, the company's chairman, president and chief executive officer said in a statement: "I am unwilling to subject the HP organisation to the continuing distraction of pursuing this acquisition any further."
EDS unveils IP initiative at Comdex
Services giant EDS used the Comdex show in Las Vegas last week as the venue to launch its service initiative to move clients' voice, video and data traffic off phone lines and onto a converged IP network.
EDS calls its new service the Intelligent Network Foundation (INF). It can be deployed for both wired and wireless platforms and will include voice over IP (VoIP) Web chat capabilities for customer service, unified messaging and access to data via wireless devices.
According to company officials, a converged network will cut support costs as well as the cost of ownership by as much as 25 per cent.
EDS launches BlueSphere business unit
EDS last week also launched BlueSphere, a business unit which focuses on improving back-end Web integration, said Brad Rucker, executive director of Interactive Architects Practice at EDS. Rucker, who is expected to be named BlueSphere's president, said clients are no longer interested in bolt-on solutions.
"We've had a lot of clients with a Web presence - a nice, slick site - but when it generates orders, they've got some significant problems [with integration]," Rucker said.