Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Dorine Essey who wrote (106140)	3/2/1999 11:40:00 AM
From: Jeffrey E. Klein	Read Replies (1) \| Respond to of 176387

To all: Do you think that this has potential to really move the stock, along with other offerings on superstore? Is this being underplayed right now? Jeff

To: Dorine Essey who wrote (106140)	3/2/1999 11:56:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 176387

HP Official announcement-Just in---> Hewlett-Packard to Split Into Two Companies (Update1) Hewlett-Packard to Split Into Two Companies (Update1) (Adds details from company.) Palo Alto, California, March 2 (Bloomberg) -- Hewlett- Packard Co., the world's No. 2 computer maker, said it will split into two separate companies as the 61-year-old company moves to focus on growth markets and boost lackluster performance. Hewlett-Packard will create a company for its test and measurement divisions and one for computing and imaging. Current H-P shareholders will hold shares in both. H-P said it may spin off 15 percent of the measurement unit in an initial public offering. The company has cut workers and spending to boost profit as prices for its printers and personal computers fall. Sales of its testing equipment dropped 14 percent in the fiscal first quarter because of recessions in Asia. ''This (split) might help unlock the value,'' said Larry Borgman, an analyst at Josephthal & Co., which rates H-P ''buy.'' The company's shares are little changed from a year earlier, while rival International Business Machines Corp.'s stock climbed 67 percent. Analysts said a split could boost Hewlett-Packard shares, which are halted on the New York Stock Exchange pending news. Slowing Growth Though H-P's first-quarter earnings beat expectations, the company expects lackluster sales growth for the rest of its fiscal year because of a slowdown in some businesses in North America and Europe. ''Their primary issue is generating growth and expense control concurrently,'' said Andrew Neff, an analyst at Bear Stearns & Co., who rates Hewlett-Packard ''attractive.'' While H-P's computer products group, which makes up about 85 percent of sales, increased 3.3 percent in the fiscal first quarter ended Jan. 31, revenue in its much smaller medical- equipment business fell 13.3 percent to $307 million from $354 million. Sales in its test and measurement unit fell 14.4 percent to $919 million from $1.07 billion. Sales of electronic components, fell 9.9 percent to $228 million from $253 million. H- P's total sales rose 1 percent to $11.9 billion from $11.8 billion. Analysts said there's been speculation that the company would sell or spin off its test and measurement and medical equipment units, which don't fit in with its main business of selling computers, printers and Internet products. ''The company's growth rate has been dragged down by the test and measurement business, which is in a recession,'' said Borgman. He said he talked to H-P yesterday and the company didn't mention any plans to split up. To cope with slowing growth, the Palo Alto, California-based company has slashed expenses, cut its workforce and put a freeze on hiring. Early Days That's a far cry from the company's early days. Stanford University engineers William Hewlett and David Packard started the company -- and Silicon Valley -- in 1938 in a Palo Alto garage. Hewlett-Packard went on to dominate the market for electronic test-and-measurement equipment and in 1966 built its first computer. The Journal said that H-P hired consulting firm McKinsey & Co. to examine possibilities for the company. The company recently has begun developing devices that consumers can use to harvest information from the World Wide Web. Net income in the three months ended Jan. 31 climbed 3.3 percent to $960 million, or 92 cents a share, from $929 million, or 86 cents, in the year-earlier period, Hewlett-Packard said last month. However, the company also said it expects fiscal 1999 sales growth to be at the low end of its earlier forecast for an 8 percent to 10 percent rise.