[Info-vax] HP: 8 Billion Dollar "Impairment" Charge, New Services Management

[John Wallace]

On Aug 9, 12:12 am, JF Mezei <jfmezei.spam... at vaxination.ca> wrote:
> Stephen Hoffman wrote:
> > Earnings per share reportedly expected to be up 6 cents per share to
> > about $1.00, but with an eight billion dollar "impairment" charge.
>
> From HP's press release:http://h30261.www3.hp.com/phoenix.zhtml?c=71087&p=irol-newsArticle&ID...
> ##
> Services goodwill impairment charge
> HP expects to record a non-cash pre-tax charge for the impairment of
> goodwill within its Services segment of approximately $8 billion in the
> third quarter of its fiscal 2012.
> ##
>
> Looks like they are writing down the value of Hurd's purchase of EDS.
> They wrote off Hurd's purchase of Palm already.
>
> And EDS was to make HP grow to rival IBM's services division. Looks like
> it isn't really panning out.
>
> Anyone have information on whether this is just the case (less demand
> overall for instance) or whether this was HP not executing/managing that
> division properly ?
>
> Will the musical chairs just announced just result in the same or is
> there potential to turn EDS into something of a success ?

I've had some historic dealings a decade or two ago with EDS when they
were a reasonably respected technology provider to GM.

More recently I've heard and read plenty of stories about EDS as a
supplier to UK government and major corporates.

It's hard to imagine how these could be the same companies (actually,
it isn't, but...).

I can see why HP might have been interested in the modern EDS customer
base. It's hard to see why HP would be interested in modern EDS's
delivery capability as reported in the media (reports which tally with
some stories I've heard from more reliable sources).

And then there's the HP purchase of Autonomy.

I have no idea where HP go from here, and it doesn't look like they do
either.