Post-merger slowdown at HP.
In May, immediately after finalising Hewlett-Packard's acqusition of Compaq (Compaq Computer Corporation, Houston, TX, www.compaq.com) Compaq was the leading PC manufacturer when it was acquired by HP in 2002. Founded in 1982 by Rod Canion, Jim Harris and Bill Murto, one year later the company shipped 53,000 PC-compatible COMPAQ Portables, resulting in $111 , HP CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Carly Fiorina Cara Carleton "Carly" Fiorina (born Cara Carleton Sneed; September 61954 in Austin, Texas) is an American business executive, best known as former CEO (1999–2005) and Chairman of the Board (2000–2005) of Hewlett-Packard (HP). called Wall Street analysts together for a briefing. Their reaction to her upbeat presentation was to scurry back to their desks and reduce their revenue forecasts for the company by up to 10%.
Such scepticism scep·ti·cism
Variant of skepticism.
a personal disposition toward doubt or incredulity of facts, persons, or institutions. See also 312. PHILOSOPHY. — skeptic, n. was not unfounded. In the company's third quarter to the end of July 2002, HP reported revenues down 11% to $16.5 billion, compared to $18.6 billion achieved in the same quarter a year ago by the pre-combined companies. This was after Fiorina herself had warned that post-merger, sales might initially fall by about 5%.
Perhaps most disappointing for Fiorina was the decline in almost all sectors - only the printer division notched up a revenue increase. Compared to the same period a year earlier, PC revenues dropped 19%, server and software revenues fell 22%, and IT services were down 7%.