Hewlett plans to split in 2 in revamping: An effort to compete in a more focused way
Article Abstract:
The Hewlett-Packard Company, the iconic Silicon Valley technology concern, announced that it will divide its primary product lines into two independent businesses. One company, which will retain the Hewlett-Packard name, will focus on computers, printers and scanners, while the second yet-to-be named company will focus on electronic test equipment and medical technology. Hewlett-Packard hopes the move away from a diversified business model will allow it to compete more effectively in both of its main product lines. Sales in both divisions had been less than industry benchmarks in recent years. In the last year, Hewlett-Packard's computer business had revenues of $10.2 billion , a 3% increase over the previous year. For comparison , Dell Computer saw revenues grow by 38% over the same period. The test measurement and medical technology side saw an 11% decline in revenues when compared to the previous year. Wall Street reacted positively to the move, pushing HP's shares up $2.75 to a close of $68.625 on the New York Stock Exchange. Analysts also seemed upbeat about the decision, citing Hewlett-Packard's inability to gain a commanding market share in any of its many lines of business and its failure to articulate a single message to customers, as a good rational for dividing the businesses. 15% of the test, measurement and medical technology side of the business, which represents $7.6 billion of Hewlett Packard's $47.1 billion in revenue, will be offered to the public once the split is complete. This will make it the largest initial public offering in Silicon Valley history. Edward W. Barnholt, who is currently executive vice-president of the test and measurement business, was named chief executive of the new company.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1999
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Adding polish to home video
Article Abstract:
A growing number of home computer users are discovering that they can manipulate video on their machines. The trend has increased since early 1998, given the dropping prices for hard drive space and the much speedier Pentium, Power Mac and especially Power Mac G3 generation of computers. Numerous software vendors are rolling out consumer-friendly video editing products that allow novice users to alter moving images as well as adjust sound effects, special effects and titles. Avid Technology has bundled 60,000 copies of its Avid Cinema with some Macintosh Performa models. MGI Software's Videowave ranks as the best-selling product, enabling users to visualize thumbnail images in sequence by dragging them to a single filmstrip line. The difficult video editing process cannot match broadcast television quality at any stage, however.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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