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HP Services: $8 Billion EDS Write Down Isn’t Surprising

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http://www.thevarguy.com – For HP (NYSE: HPQ), the tech titan determined to be all things to all customers, less may yet prove to be more. In Q3 2012, the company will write down by $8 billion (nearly its entire Q2 services sales) the value of its services business in a pre-tax, non-cash “impairment of goodwill” charge. When you add that to the $1.5 billion – $1.7 billion charge HP expects to take for laying off 27,000 employees in May—the majority of which will come from its services business–sluggish service sales amid a less-than-rosy outlook, slowed PC sales, heavy competition for solution wins fro (IT news)

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Submitted by lodage on 08/10/2012

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