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Technology Stocks : HWP -- Hewlett Packard -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (3338)	11/29/1999 5:52:00 PM
From: w0z	Respond to of 4722

ICBD was a part of CTG (Component Technology Group) headed by Fred Schwettman when I was at HP. As far as I know, this group never made $1 of profit and Schwettman eventually left. I suppose some unlucky soul got stuck with it when he left but in essence, the whole company (including what is now Agilent) was subsidizing HP's losses in CTG. Most of this was in effect subsidizing the Computer Group (the new HWP) since processors were transferred at ridiculously low internal prices (i.e. not recovering costs). One of the most positive things about the Agilent spinoff is that both major businesses must now stand on their own feet without artificial internal transfer prices. As I said previously, Agilent can probably improve their margins now that they are separate but revenue growth is another entirely different issue they must face.