HP's Livermore: Distraction Over Deal Harming Services Sales

Hewlett-Packard

In an internal memo dated March 18, HP Services President Ann Livermore blamed distraction caused by the fracas around HP's bid to acquire Compaq Computer as a key reason behind the reported shortfall.

The company is expected to report second-quarter earnings on April 30.

Votes cast by HP and Compaq shareholders this week are still being tallied, but HP Chairman and CEO Carly Fiorina has all but declared victory in her quest to buy Compaq.

An HP Services spokeswoman Friday characterized the memo as "a routine quarterly update to rally the troops."

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She also said that the company has always updated its guidance to financial analysts "when it is warranted." No new guidance for the current quarter has been put forth by the company, the spokeswoman added.

HP closed down 35 cents Friday at $18.15.