HP Veer 4G

Tough news for webOS fans today, as HP just announced that it will no longer sell hardware based on the mobile operating system that it bought from Palm last year. In a statement that just hit the wire, HP said that it plans to "discontinue operations for webOS devices, specifically the TouchPad and webOS phones." The company went on to say that it will explore its options when it comes to what to do with the webOS software.

To say that today's news caught folks off-guard would be an understatement, and it's definitely disappointing to see webOS stumble like this. It's unclear what this announcement means for the platform going forward, although we've heard talk of HP possibly licensing webOS out to other manufacturers. Perhaps now that Google and Motorola have gotten into bed together, companies like Samsung and HTC may be more interested in using webOS on their devices? We'll see.

UPDATE: HP announced during its earnings call that it plans to shut down its webOS hardware division by Q4 2011. It also touched a bit on TouchPad sales, saying that "the sell-through of the product was not what we expected."

UPDATE 2: According to an HP "insider" speaking to This is my next, webOS GBU VP Stephen DeWitt said today at an all-hands meeting that HP is "not walking away from webOS." DeWitt also indicated that HP is likely planning to license webOS, says the source. When asked about licensing the OS to HTC or Samsung, HP VP Todd Bradley reportedly said that webOS is designed to work with Qualcomm chips and that many potential companies would likely want webOS to work with other kinds of chipsets.

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.

About HP

HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. The world’s largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure at the convergence of the cloud and connectivity, creating seamless, secure, context-aware experiences for a connected world. More information about HP is available at http://www.hp.com.

Use of non-GAAP financial information

To supplement HP’s consolidated condensed financial statements presented on a GAAP basis, HP provides non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted earnings per share and gross cash. HP also provides forecasts of non-GAAP diluted earnings per share. A reconciliation of the adjustments to GAAP results for this quarter and prior periods is included in the tables below. In addition, an explanation of the ways in which HP management uses these non-GAAP measures to evaluate its business, the substance behind HP management’s decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which HP management compensates for those limitations, and the substantive reasons why HP management believes that these non-GAAP measures provide useful information to investors is included under “Use of Non-GAAP Financial Measures” after the tables below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for operating profit, operating margin, net earnings, diluted earnings per share, or cash and cash equivalents prepared in accordance with GAAP.

Forward-looking statements

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of HP may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any projections of revenue, margins, expenses, earnings, tax provisions, cash flows, benefit obligations, share repurchases, currency exchange rates, the impact of acquisitions or other financial items; any statements of the plans, strategies and objectives of management for future operations, the exploration of strategic options for PSG and the execution of cost reduction programs and restructuring and integration plans; any statements concerning the expected development, performance or market share relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on HP and its financial performance; any statements regarding pending business combination transactions; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the impact of macroeconomic and geopolitical trends and events; the competitive pressures faced by HP’s businesses; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its suppliers, customers and partners; the protection of HP’s intellectual property assets, including intellectual property licensed from third parties; integration and other risks associated with business combination and investment transactions; the hiring and retention of key employees; assumptions related to pension and other post-retirement costs; expectations and assumptions relating to the execution and timing of cost reduction programs and restructuring and integration plans; the possibility that the expected benefits of pending business combination transactions may not materialize as expected or that the transactions may not be timely completed; the resolution of pending investigations, claims and disputes; and other risks that are described in HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2010 and HP’s other filings with the Securities and Exchange Commission, including HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2011. As in prior periods, the financial information set forth in this release, including tax-related items, reflects estimates based on information available at this time. While HP believes these estimates to be meaningful, these amounts could differ materially from actual reported amounts in HP’s Form 10-Q for the quarter ended July 31, 2011. In particular, determining HP’s actual tax balances and provisions as of July 31, 2011 requires extensive internal and external review of tax data (including consolidating and reviewing the tax provisions of numerous domestic and foreign entities), which is being completed in the ordinary course of preparing HP’s Form 10-Q. HP assumes no obligation and does not intend to update these forward-looking statements.

© 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP shall not be liable for technical or editorial errors or omissions contained herein.

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77 Reactions to this post

"The cell phone industry is all the buzz right now over HP. Are you going to miss webOS?"

Please limit your reaction to 140 characters or use comments for a longer reply :)
Thanks for your participation! :)

Ryan Etzel Hat hp with a passion.
Susan Blunt Mannnnnnnnnn fire sale tomorrow!! Stock up on the touchpad so if y'all draw my number you'll have one for me!! :)
Peter Kis Frak HP.
Ezio Udantha Riot O.o Why did HP bought Palm at first place :( errr ... Really loved web Os
Zach Cline Blackberry is next.
Sean Reilly Miss webOS? No, surprised? No. I used to do 3rd party sales for Verizon, at&t & T-Mobile & personally I think hp wasted resources on webOS. some people will miss the os, but the majority of consumers won't.
Darryl Mouzone That kind of sucks. WebOS wasn't bad at all. For those that want a choice other than Android or iOS now have one less alternative.
Chad Richter Webos is not dead. Hp has mentioned liscensing webos out to other manufacturers and this article says it's done with webos devices, not webos itself. I have high hopes that it will return and I early await it's resurgence.
Lisa Kimberlin Dang, I liked webos, I didn't like the palm pre plus. If they could have made better hardware I would have kept using it.
Nick Kathrein Can google swoop in and offer some cash for the software and patents so HP can minimize that damage this has done to their company?
Zaheer Ahammad Rip webOS
Eddie Chavez I guess its a good thing I recently switched to android on the samsung infuse. I will miss WebOS, it is a fantastic operating system that was cursed with poor hardware that resulted in poor developer support. I actually switched to android with the hopes that WebOS would have a resurgence. There are still the rumors about samsung purchasing WebOS, but todays announcement pretty much means the death of the operating system.
Adam Anthony Crespin Oh and keep in mind Israel, HP bought Palm when Palm was already on its death bed
Adam Anthony Crespin You know it was a nice platform but its all about Windows 7 and iPhone. I feel that RIM will also see its last days soon
Angel Arroyo Hopefully another company will buy it webos is a great OS and very much under rated. Palm is one of the granddaddy's of the mobile industry should not go down like that.
Juan Carrasquillo Not going to miss it since I have android but sure would like for a company to purchase all their IP and maybe implement some of their multitasking in an OS. Come on Google!
Jason King This is a very sad day in the phone OS game. This was a good operating system bad hardware and slow updates killed this OS. If RIM was smart they would pick this system up QNX is very similar but really android and apple are to big in this game to stop. Very sad. Competition right out the window.
Miles Lark I had a palm pre plus, I loved the software, I HATED the device, i had to replace it like 6 times
Henry Lucio whats WebOS ?? lol
Jason Torchy wp7 is next.
Israel Leiva Fuck HP! First they monopolized their printers to only take their brand of ink cartridges and their mobile OS sucked. Another one bites the dust. In the end it will only be Apple and Google. Again, fuck HP!!!
Willie Sneeze I am and bout to buy a touch pad to keep meomry
Kaseem Wali This should have happened a long time ago. No one wants to have a webOS phone like the pre or pixi. The design is horrible and the features are still in the past. Maybe if they got with the times, they would have given apple and Google a run for their money.
Jason W. Barrs Web who???
Luis Leon DAMMIT! Poor Web OS. Never had a chance to fully live. :'(
Anthony Tracy I literally just bought the touchpad yesterday. Awesome...
Eko Budi Prasetio WebOS is a great operating System, it could be alternative choice from android or IphoneOS, it also has a pretty UI. its too bad.....
Steve Howle Blame it on Palm's poor marketing and updates. Was a great OS.
Steven Socrates Bonitsis So they decide to drop webos before the pre3 even gets released? Who put these guys in charge?
Lamont Johnson Simplicity gives blackberry a shot. But there app store needs to expand like the crack game did in the 80's.
Konner Shea yeah. I'm actually going to. ;/
Tywan Daniels bout damn time
Lamont Johnson Very hard to compete this late in the game. Oh well!!
Nick Kalman That's what happened when idiots get hold of a great OS.
Evan Nakagawa I know I might get a lot of hate for this, but I think the death of webOS is good because now RIM has a better shot in the marketplace.
Agustin Ilu-kwar "webOS"pronounced in spanish means "eggs" and its spelled huevos
Trey Roethler WebOS Sucks anyway, I really don't care
Muneer KhanVict It's a shame, webOS was actually pretty damn good.
Hector Lopez Yes I agree the webOs is more friendly than iOS and android. But bad hardware make them fail.
Joel Gomez Poor hardware design killed web os
Nicholas Rivera I can't wait to see what kind of phones HTC makes for webOS :D
Steve Williams no ones a buzz about hp lol
Joe Noyola Blame android for there demise...
Adam Khana Charsi http://www.samfirmware.com/apps/blog/show/8131533-apple-wants-to-ban-every-galaxy-and-tablet- worth reporting. let's all reiot against crapple.
Angel Miguel Peguero sad I love web os better then ios
Johnny Torres Free touch pads...
Ricardo Lopez i feel sorry for those who bought a touchpad :/
Mitch Lopez Nah nah nah nah, nah nah nah, hey hey good bye!
Cristian Tomasito All the while wp7 prepares its mango update with 500 features to add, hitting 40k apps real soon, all in only 9 months of being out in the market.
TJ Jurado VERY SAD! Think the Fat Lady is warming up her voice! :-\
Marleny Reyes Awai TOTALLY OUTRAGEOUS!!! HP=Loser
Anita Jones I agree with Sean Sedgwick. The OS was great. It's the half a** hardware they used that killed it.
Brian Edson I like palms webOS but I felt android would be more productive. My plan was gonna be to have a droid smartphone (posted this from my droid incredible) and then to get the touchpad but I rethought it when I found out the touchpad wasn't up to par with other tablets.
Zach Cline Lol, FAIL.
Chad Boler I guess you guys don't have to worry about any winners of the great phonedog tablet giveaway choosing HP TouchPads
David Nguy?n It is sad. I think WebOS never gotten a chance to shine with horrible hardware, tiny screens and no apps. Palm made a terrible mistake in selling to HP. What did you expect.
Jamil Oquendo Not even Manny Pacquiao could save them.
Francis San Pedro $75 touchpad?
Louis Silvestro WebOS had so much potential, I think it was a bad decision.
Johnny Torres webOS = Myspace
Sean Sedgwick WebOS is a fantastic operating system... The touchpad was cheap and plasticky hardware and they just needed to work out the bugs in the software. I like WebOS better than Android!
Bryan Dotman That was fast.
John Cruz no android is killing web0S
Jordan Bulalayao the official death of the palm franchise.
Andrew Broombaugh wait...they still make webOS devices? I did rather love the pda half of my palm treos, (yes plural, silly me). it's just too bad the phone half was complete crap.
Rick Grant Palm should NEVER have sold out......
BigChuck Rossetti Never even seen one before....
Jean François Donet iPhone 4 has the wifis.
Darwin Ayala Hell no
Francis Phimphivong Not really. Lol.
Danté Vasquez Heck no mango update ftw

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