HP's Fiorina Defends Earnings

During a call with analysts following the release of the company's earnings for the quarter ended Jan. 31, one analyst asked Carly Fiorina if HP "goosed the numbers" in light of the contentious proxy battle to win shareholder approval for its merger with Compaq Computer.

"Metaphorically, literally, and in every other conceivable way, I can look you in the eye and say these numbers are exactly what they appear to be,solid execution across the board in an environment that continues to be challenging," she said.

Solution providers said they, too, are seeing an uptick in sales of HP products. "Through our fourth quarter [ended Dec. 31 and our first quarter, we are seeing a 20 percent increase in revenue, and most of that is attributed to HP," said John Sheaffer, president and CEO of Sysix Technologies, Westmont, Ill.

Shortly after the call began, dissident shareholder and HP board member Walter Hewlett e-mailed and faxed a statement to the media that said in part, "I am pleased to see Hewlett-Packard continue to perform well. These results further confirm that Hewlett-Packard does not need to acquire Compaq."

When informed of Hewlett's press release, Fiorina shot back, "I agree with Walter Hewlett on one point: This is not a company in crisis."