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HP reports $3.3 billion dollar loss on webOS
Even though HP reported higher-than-expected earnings today on revenue of $32.1 billion, the company's revelations around the fiscal losses related to the shuttering of its webOS business stood out in a big way.
Above and beyond the $1.2 billion HP spent on Palm in April 2010, the cost of shuttering the company's nascent webOS and tablet business cost an extra $3.3 billion, according to HP's Q4 2011 earnings report and call.
HP's earnings report states:
Non-GAAP earnings and operating profit information excludes after-tax costs of $3.3 billion, or $1.56 per diluted share, related to the wind down of HP's webOS device business, impairment of goodwill and purchased intangible assets, amortization of purchased intangible assets, restructuring charges and acquisition-related charges.
The statement also specificies webOS-related losses in the fourth quarter specifically:
Fourth quarter non-GAAP earnings information excludes after-tax costs of $2.1 billion, or $1.05 per diluted share, related to the wind down of HP's webOS device business, impairment of goodwill and purchased intangible assets..."
Meg Whitman, the new chief executive at the company, didn't refer specifically to pending webOS decisions or strategies, but she did indicate that she wants the company to engage in more research and development and software development as opposed to the aquisitions former CEO Leo Apotheker embraced.
"We cannot continue to rely on acquisitions alone at HP," Whitman said. "We have a lot of runway with our own internal R&D capability, if we run it right."
HP is predicting $4 a share in earnings per share for 2012, which is lower than the $4.56 that was previously expected.
Analysis
George Jones has been writing about technology and reviewing hardware...










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