HP & PALM

MT5011
Finance Project
Detailed Acquirer
Information

HP
 Overview

O Founded by Bill Hewlett and Dave Packard in 1935

O Headquarter in Palo Alto, California, USA
O One of the largest Information Technology
companies in the world
O Cathie Lesjak is interim CEO and chief financial
officer
O HP serves more than one billion customers in more
than 170 countries on six continents
O 304,000 employees worldwide
 Milestones
O 1939 Hewlett-Packard Company founded
O 1966 HP Labs founded; development of HP’s first computer
O 1972 produced the world’s first scientific pocket calculator
O 1984 HP introduced both inkjet and laser printers for the
desktop
O 2002 Merger of HP and Compaq
O 2008 Merger of HP and EDS
O 2009 Acquisition of 3Com
O 2010 Buyout of Palm
 Business Description
HP markets its products to
O Households
O Small- to medium-sized businesses
O Enterprises; via
• Online distribution,
• Consumer-electronics and office-supply retailers
• Software partners and major technology vendors
• Directly
 Business Description
HP's three business groups drive industry leadership in core
technology areas:

O The Personal Systems Group: business and consumer PCs,

mobile computing devices and workstations

O The Imaging and Printing Group: inkjet, LaserJet and

commercial printing, printing supplies

O Enterprise Business: business products including storage

and servers, enterprise services and software
Major products and services
O Developing and manufacturing computing,
data storage, and networking hardware
O Designing software and delivering services
O Personal computing devices
O Enterprise servers
O Storage devices
O Printers and other imaging products
O Scanners, digital cameras, calculators, PDAs
 Fact File
O HP supports the top 200 banks and more than 130
of the world’s major stock exchanges
O Ships more than 1 million printers per week and 48
million PC units annually
HP MANAGES
O OVER 200 DATA CENTERS
O 380,000 SERVERS
O 5.4 MILLION DESKTOPS
O 17 MILLION IP ADDRESSES
 Financial performance
O Posted net revenue of $115 billion
O $40 billion coming from services
O Operating income $10.136 billion
O Net income $9.415 billion
O Total assets $52.539 billion
O Total equity $38.942 billion
(as of 2009)
Detailed Acquired Information

PALM
 Company Overview

O Palm, Inc. (Palm) is a US based company, engages in offering mobile products for
individual users and business customers.
O Serves consumers, mobile professionals and businesses by offering a range of
products and services, such as Palm Treo and Centro phones, as well as software,
services and accessories.
O Its products are marketed through select Internet, retail, reseller and wireless operator
channels and at the Palm Stores. Also sells through Palm.com.
O Palm's major customers are AT&T Inc., Sprint Nextel Corporation and Verizon
Wireless
O Organized under two reportable segments, namely Smartphones and Handheld
Computers.
O Product line operates on three different platforms, namely, Palm webOS, Windows
Mobile OS and Palm OS.
O The Palm webOS developer program allows a developer to access the Palm
Developer Center at www.developer.palm.com, sign up, and start developing and
distributing applications for webOS devices.
 Financial Overview
O The company reported revenues of (U.S. Dollars)
USD 735.87 million during the fiscal year ended May
2009, a decrease of 44.20% from 2008.
O The operating loss of the company was USD 300.69
million during the fiscal year 2009, as compared to an
operating loss of USD 158.22 million during 2008.
O The net loss of the company was USD 732.19 million
during the fiscal year 2009, as compared to a net loss
of USD 105.42 million during 2008.
O Revenue: USD 735.9 million (2009)
O Number of employees: 939
 History
O 2009 New Products/Services Palm to open webOS developer program in
December.
O 2009 New Products/Services webOS operating system launched.
O 2008 New Products/Services The company launched Palm Pre products.
O 2006 and 2007 New Products/Services The Treo series smartphone was
launched by the company.
O 2005 Corporate Changes/Expansions The company changed its name back to
Palm, Inc.
O 2003 Acquisitions/Mergers/Takeovers The company acquired Handspring,
Inc., and changed its name to palmOne, Inc.
O 2001 Incorporation/Establishment Palm formed PalmSource, Inc., a
subsidiary for its operating system.
O 2000 Stock Listings/IPO Palm sold shares in an initial public offering and
concurrent private placements..
O 1999 Corporate Changes/Expansions 3Com Corporation separated the
operations of Palm Computing Inc. After spin off Palm Computing, Inc.
changed its name to Palm, Inc.
O 1992 Incorporation/Establishment The company was incorporated as Palm
Computing.
SWOT Analysis
 Products and Brands
Products:
O Smartphones
O Palm webOS
O Windows Mobile OS
O Palm OS
O Handheld Computers
Brands:
O Palm
O Palm webOS
O Palm OS
O Palm Pre
O Treo
O Centro
O Foleo
O Mojo
O Synergy
O Touchstone
Key Competitors