A Bombshell: HP Put an End to webOS Phones and TouchPad

You would be surprised to hear this news, but yeah – HP will stop its operations for webOS devices, specifically the TouchPad and webOS phones.

HP can’t hide the fact that its webOS devices, particularly the TouchPad, are not performing well in terms of sales since its launch. And I believe that could be the reason of killing it. Some analysts first thought HP would be a strong contender in tablet and smartphone segments because the company has its own mobile operating system; and unlike other players which leverage Android and Windows Phone, dare I say the big boys HTC and Samsung and among others -- HP has the full control in innovating its own competitive ecosystem. In a market with tough competition, developing webOS while trying out new ideas for possible great devices to run the software wouldn’t be easy for HP though. And HP believes there’s a need of a fundamental shift of its strategies to stay as a competitive company after all.



So what will happen to webOS by then? Well, HP said it will continue to explore options to optimize the value of webOS software going forward. Now this leaves me to think HP probably has plans of licensing webOS in the future, but that’s quite hard to figure out who’s going to take it. Any thoughts?



Click to Read Press Release

HP Confirms Discussions with Autonomy Corporation plc Regarding Possible Business Combination; Makes Other Announcements



PALO ALTO, Calif.–(BUSINESS WIRE)–HP (NYSE: HPQ) today commented on the recent announcement by Autonomy Corporation plc (LSE: AU.L). HP confirms that it is in discussions with Autonomy regarding a possible offer for the company.



HP also reported that it plans to announce that its board of directors has authorized the exploration of strategic alternatives for its Personal Systems Group (PSG). HP will consider a broad range of options that may include, among others, a full or partial separation of PSG from HP through a spin-off or other transaction.



In addition, HP reported that it plans to announce that it will discontinue operations for webOS devices, specifically the TouchPad and webOS phones. HP will continue to explore options to optimize the value of webOS software going forward.



HP today announced preliminary results for the third fiscal quarter 2011, with revenue of $31.2 billion compared with $30.7 billion one year ago.



In the third quarter, preliminary GAAP diluted earnings per share (EPS) was $0.93 and non-GAAP diluted EPS was $1.10, compared with third quarter fiscal 2010 GAAP diluted EPS of $0.75 and non-GAAP diluted EPS of $1.08. Non-GAAP diluted EPS estimates exclude after-tax costs related primarily to the amortization of purchased intangible assets of approximately $0.17 per share and $0.33 per share in the third quarter of fiscal 2011 and fiscal 2010, respectively.



For the fourth fiscal quarter of 2011, HP estimates revenue of approximately $32.1 billion to $32.5 billion, GAAP diluted EPS in the range of $0.44 to $0.55, and non-GAAP diluted EPS in the range of $1.12 to $1.16. Non-GAAP diluted EPS guidance excludes after-tax costs of approximately $0.61 to $0.68 per share, related primarily to restructuring and shutdown costs associated with webOS devices, the amortization and impairment of purchased intangibles, restructuring charges and acquisition-related charges.



HP estimates full-year FY11 revenue will be approximately $127.2 billion to $127.6 billion, down from its previous estimate of $129 billion to $130 billion. FY11 GAAP diluted EPS is expected to be in the range of $3.59 to $3.70, down from its previous estimate of at least $4.27, and FY11 non-GAAP diluted EPS is expected to be in the range of $4.82 to $4.86, down from its previous estimate of at least $5.00. FY11 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $1.16 to 1.23 per share, related primarily to restructuring and shutdown costs associated with webOS devices, the amortization and impairment of purchased intangibles, restructuring charges and acquisition-related charges.



HP will host a conference call with the financial community today at 2 p.m. PT / 5 p.m. ET to discuss these announcements well as HP’s third quarter 2011 financial results. The call is accessible via an audio webcast at www.hp.com/investor/2011q3webcast.

To receive latest technology updates, you can subscribe either by E-mail or by RSS Feeds. Follow me also on Twitter.