Hewlett-Packard Company (NYSE:HPQ), the prime maker of printers and personal computers in the world, is undertaking assessment of the business units which are not delivering up to the expectations. It has plans to dispose of these units if they turn out to be non-performing for a time span of a year or more.
In a 10-K filing on December 27, with the United States Securities and Exchange Commission, Hewlett-Packard Company (NYSE:HPQ) said, “We also continue to evaluate the potential disposition of assets and businesses that may no longer help us meet our objectives.” The reason for highlighting the above quote is that a year before, this verdict was not a part of the document and incorporating the same ensures the focus of the Company in elimination all the Non Value Add units.
The filing also said that Hewlett-Packard Company (NYSE:HPQ) may “dispose of a business at a price or on terms that are less desirable than we had anticipated.” This further demonstrates that it urges to take actions and does not wishes to carry on any sector that is not meeting the targets for the specified domain.
Meg Whitman, the Chief Executive Officer of Hewlett-Packard Company (NYSE:HPQ), also stated that she has no intentions to further develop the division for Personal Computer. She has been working since September 2011 on Palo Alto Networks Inc (NYSE:PANW). It is Hewlett -Packard Company (NYSE:HPQ) based in California. The attention has been brought up because Palo Alto Networks Inc (NYSE:PANW) has seen the sales graph declining, for five consequent quarters, there have been ruined transactions, agreements and deals for numerous years, blunder in planning, etc.
Hewlett-Packard Company (NYSE:HPQ) demonstrated that it is not unaware that there will be possible drawbacks if they effected the disposal of units. It did mention, “When we decide to sell assets or a business, we may encounter difficulty in finding buyers or alternative exit strategies on acceptable terms in a timely manner, which could delay the achievement of our strategic objectives.”
It surely appears that the decision of evaluation and disposal, if required, is well thought over.
Shares of Hewlett-Packard Company (NYSE:HPQ) were up by 4.17% to close at $14.25
Shares of Palo Alto Networks Inc (NYSE:PANW) were up by 1.69% to close at $53.52