Hewlett-Packard promises solid financial growth as a result of its strategic focus on cloud computing, connectivity, and software, chief executive Leo Apotheker and chief financial officer Cathie Lesjak said today.
In a press and analyst session in San Francisco, HP's leaders said they plan on profitable growth, margin expansion, and increased capital spending in the future.
HP plans to cash in on the growing opportunities around cloud services, or providing web-connected services for everyone from small businesses to consumers to big enterprises.
"Who but HP is positioned to do this?" Lesjak asked. "We are skating to where the puck is going," referring to hockey star Wayne Gretzky's motto that you skate to where the hockey puck is going, not where it has been.
Apotheker said HP is planning to expand its sales force and grow its share of wallet, meaning it will grab more of the money spent by consumers and enterprises in the future. The company will acquire companies when needed and improve its efficiency with operational excellence, Apotheker said. Lesjak said HP will grow its profits and expand its capital spending at the same time.
The company will also return cash to shareholders through buybacks and dividends. It is announcing a 50 percent rise in the company's regular quarterly dividend to 12 cents a share. The company expects double-digit cents-per-share increases in the dividend on an annual basis.
HP believes it can deliver $7 in non-GAAP earnings per share by 2014. Apotheker said his heart goes out to the people in Japan and HP's employees and customers there. He said the company does a lot of business there and he was there a week ago. He said his people are safe and HP's infrastructure there was not touched.
"We are trying to assess the situation there now," he said.