HP Office at Cyberjaya
Immediately after reporting missed profit target, HP taken drastic steps to reduce operation expenditure including salary cut for every employees worldwide. In gloomy economy situation like now, this move come with not really surprising.
The CEO take the lead with 20% reduction of base salary, although it is common that CEO in big companies usually rake millions of dollar in base salary and other benefit. This cut doesn’t have much impact on their life style. But not for middle to bottom level employees. Usually they are the most affected, even with the less percentage reduction considering their small base pay and benefit they earned.
- Mark Hurd – 20 percent
- Executive Council members – 15 percent.
- Other executives – 10 percent.
- All other exempt employees – 5 percent.
- Non-exempt employees – 2.5 percent
HP not alone in doing this action. Other MNCs who has facilities in Malaysia such as AMD, Intel, Dell, Avago, ASE has taken steeper steps to steer their company away from bad situation by laying off employees, freezing bonus and increment , temporary shut down and etc.
Welcome to the world where reduced profit could lead to salary cut or laying off. From employee point of view, its hard to understand why such dramatic action needed when they have been working hard to contributing to the company success in the past.
Personally, I feel the blame should goes to the investors who’re hungry for more profit. The principt of being considerate is almost zero to non existant when profit is the top most priority. But that’s how our world is going on, and going to be on the later stage.
Among the highlights of Google’s 2008 Q4 earning in the eyes of non-financial savvy blogger, who knows only revenues and income.
Revenues – Google reported revenues of $5.70 billion in the fourth quarter of 2008, representing an 18% increase over fourth quarter 2007 revenues of $4.83 billion and a 3% increase over third quarter 2008 revenues of $5.54 billion. Google reports its revenues, consistent with GAAP, on a gross basis without deducting TAC.
International Revenues – Revenues from outside of the United States totaled $2.86 billion, representing 50% of total revenues in the fourth quarter of 2008, compared to 48% in the fourth quarter of 2007 and 51% in the third quarter of 2008. Had foreign exchange rates remained constant from the third quarter of 2008 through the fourth quarter of 2008, our revenues in the fourth quarter of 2008 would have been $334 million higher. Had foreign exchange rates remained constant from the fourth quarter of 2007 through the fourth quarter of 2008, our revenues in the fourth quarter of 2008 would have been $266 million higher.
Revenues from the United Kingdom totaled $685 million, representing 12% of revenue in the fourth quarter of 2008, compared to 14% in the fourth quarter of 2007 and 14% in the third quarter of 2008.
Operating Expenses – Operating expenses, other than cost of revenues, were $1.65 billion in the fourth quarter of 2008, or 29% of revenues, compared to $1.72 billion in the third quarter of 2008, or 31% of revenues. The operating expenses in the fourth quarter of 2008 included $890 million in payroll-related and facilities expenses, compared to $859 million in the third quarter of 2008.
Operating Income – GAAP operating income in the fourth quarter of 2008 was $1.86 billion, or 33% of revenues. This compares to GAAP operating income of $1.65 billion, or 30% of revenues, in the third quarter of 2008. Non-GAAP operating income in the fourth quarter of 2008 was $2.15 billion, or 38% of revenues. This compares to non-GAAP operating income of $2.02 billion, or 37% of revenues, in the third quarter of 2008.
Net Income – GAAP net income for the fourth quarter of 2008 was $382 million as compared to $1.29 billion in the third quarter of 2008. Non-GAAP net income was $1.62 billion in the fourth quarter of 2008, compared to $1.56 billion in the third quarter of 2008. GAAP EPS for the fourth quarter of 2008 was $1.21 on 317 million diluted shares outstanding, compared to $4.06 for the third quarter of 2008, on 318 million diluted shares outstanding. Non-GAAP EPS for the fourth quarter of 2008 was $5.10, compared to $4.92 in the third quarter of 2008.
notes: “We recognized $1.09 billion in asset impairment charges related primarily to our investments in AOL and Clearwire”
Cash – As of December 31, 2008, cash, cash equivalents, and short-term marketable securities were $15.85 billion.
