HP did address whether it would buy back stock. Such a short-term move increases a company's perceived shareholder value but can dramatically reduce the resources needed to execute a turnaround. Lesjak said HP won't do this. Each business unit then presented its unique advantages and ability to address challenges such as Oracle's unfortunate attack on its large-scale systems, which HP says it is starting to mitigate.
Overall, this is a very good effort for the first year of what will likely be at least a four-year turnaround. Granted, much of the execution, including layoffs at HP, will take place year, but company executives showcased a good knowledge of the problems they face, believable solutions to correct them and metrics to assure their progress.
Going by the numbers, HP over the last decade has shifted from what was mostly a printing company to one that's far more diversified and balanced. Such a shift, combined with this week's honest presentation of the business and solid plan to grow and improve it, speaks well to HP's long-term survival.
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