This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

HP's Apotheker: Software Key to Future

PALO ALTO, Calif. ( TheStreet) -- HP's (HPQ - Get Report) new CEO Léo Apotheker has vowed to make the tech giant's software business a top priority, and also believes that the computer and server maker is currently undervalued.

"HP is grounded in the hardware business," he said during a conference call with analysts on Friday. "I bring to HP an asset that that HP is less grounded in, and that's software."
Leo Apotheker
Leo Apotheker, HP's new CEO

Apotheker, a 20-year veteran of German software giant SAP (SAP - Get Report), also highlighted his experience in "value-added services," but software was a recurring theme during the conference call.

"I believe, and the management believe, that HP should be more valuable than the sum of its parts," he added. "We all believe that software is the glue to make that happen."

The former SAP CEO would not reveal specific details of his software strategy, but he is widely expected to bolster HP's OpenView systems management product against rival IBM's (IBM) Tivoli offering.

HP has already lauded Apotheker's software track record. In a statement released after the market close on Thursday, HP explained that he helped lead SAP to 18 consecutive quarters of double-digit software revenue growth.

Apotheker, however, now faces the challenge of inspiring HP investors. HP's stock has fallen more than 20% this year, thanks partly to the shock departure of former CEO Mark Hurd following an expenses scandal. Hurd, who was credited with turning HP's fortunes around, was something of a Wall Street darling, and earned plaudits for his tight expense control.

At least initially, investors have been largely underwhelmed by HP's new CEO hire. The tech bellwether's stock was down $1.04, or 2.47%, to $41.03 shortly after market open, despite a modest gain in tech stocks that saw the Nasdaq rise 0.63%.

"I happen to believe that [HP] is a company with a lot more value than is currently attributed to it," said Apotheker, during the conference call, highlighting HP's strong balance sheet, properties and people.

HP exited its third quarter with cash and investments of $14.8 billion and has also been on something of an acquisition tear recently, buying security specialist ArcSight( ARST ) for $1.5 billion and out-muscling Dell (DELL) for storage maker 3Par. (PAR)

Apotheker, a German national who is said to be fluent in five languages, also highlighted his international experience as a big plus for HP.

"One of the abilities that I have is that I am a global citizen," he said. "HP is very focused to expand its markets; we want to expand faster in the emerging markets."
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HPQ $12.27 0.00%
SAP $78.62 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs