Hewlett-Packard President Meg Whitman Visits CNBC

Meg Whitman, Hewlett-Packard President & CEO speaks one-on-one with David Faber Today on CNBC. A transcript follows:

DAVID FABER: BACK TO CERTAINLY THE BIGGEST NEWS OF THE DAY, HEWLETT-PACKARD THE LARGEST LAGGARD ON THE DOW, OF COURSE, NOW TRADING AT A DECADE LOW. THE COMPANY SAYING AS IT RELEASED EARNINGS THIS MORNING THAT IT WAS ALSO THE VICTIM OF FACTIOUS ACCOUNTING AT AUTONOMY, THE COMPANY IT PURCHASED IN OCTOBER OF LAST YEAR. THE CEO OF HEWLETT-PACKARD, SHE WAS NOT CEO THEN BUT SHE IS NOW, OF COURSE, IS MEG WHITMAN. SHE JOINS US NOW. AND MEG IT DOES NOT GO UNNOTICED BY US THAT YOU ARE WILLING TO COME ON WHETHER IT IS GOOD NEWS OR BAD AND SO WE CERTAINLY APPRECIATE THAT. I WANT TO GET YOUR RESPONSE ACTUALLY TO SOME COMMENTS THAT ARE JUST OUT FROM MIKE LYNCH. HE’S THE GENTLEMAN THAT YOU FIRED WHO FOUNDED AND RAN AUTONOMY, OF COURSE OVERSAW THE SALE TO HEWLETT-PACKARD. HE SAYS, “HP’S DUE DILIGENCE DURING THE ACQUISITION WAS OVERSEEN BY KPMG AND OTHERS. THAT THE DUE DILIGENCE WAS EXTENSIVE AND THAT HE REJECTS THESE FALSE ALLEGATIONS FLATLY.” I’D LOVE TO GET YOUR RESPONSE TO THAT.

MEG WHITMAN: WELL WHAT I CAN TELL YOU IS THAT AFTER I FIRED MIKE LYNCH FOR MISSING HIS Q2 NUMBERS WHEN HE WAS A PART OF THE AUTONOMY MANAGEMENT TEAM WHEN HP BOUGHT THE COMPANY, A SENIOR EXECUTIVE ON HIS TEAM CAME FORWARD TO TELL US ABOUT THESE ACCOUNTING IMPROPRIETIES, ABOUT OUTRIGHT MISREPRESENTATIONS AND DISCLOSURE FAILURES. AND WE LAUNCHED AN INVESTIGATION LED BY PWC A FORENSIC REVIEW OF AUTONOMY’S FINANCIALS PRIOR TO THE ACQUISITION BY HP AND WE BELIEVE THAT THERE IS A WILLFUL EFFORT ON THE PART OF CERTAIN MEMBERS OF AUTONOMY MANAGEMENT TO MISLEAD SHAREHOLDERS WHEN AUTONOMY WAS A PUBLICLY HELD COMPANY AND MISLEAD POTENTIAL BUYERS INCLUDING HP AND WE STAND BY THE FORENSIC REVIEW THAT WE’VE SEEN. AND AS YOU KNOW WE HAVE TURNED THIS OVER TO THE SEC, THE ENFORCEMENT DIVISION OF THE SEC, AS WELL AS THE SERIOUS FRAUD OFFICE IN THE UK.

FABER: WHAT WOULD YOU SAY TO THOSE THAT SAY YOU KNOW WHAT HP OF COURSE NEVER SHOULD HAVE BOUGHT THIS COMPANY BUT THAT YOU ARE NOW COMING UP WITH REASONS AS TO WHY ITS VALUE IS NOT WHAT IT ONCE WAS AND WHY IT IS NOT PERFORMING AS WELL AND NONE OF THESE WILL RISE TO THE LEVEL, MEG, OF OUTRIGHT FRAUD THEY’LL SIMPLY BE THINGS THAT WERE NOT DONE PERHAPS AS WELL AS THEY COULD’VE BEEN AT AUTONOMY?

WHITMAN: WELL OBVIOUSLY, WE FEEL THERE WAS VERY SERIOUS ACCOUNTING IMPROPRIETIES, FINANCIAL DISCLOSURES THAT WERE NOT MADE APPROPRIATELY AS WELL AS MISREPRESENTATIONS. AND WHAT I WILL TELL YOU ABOUT AUTONOMY IS WE STILL LIKE THE BUSINESS, WE LIKE THE TECHNOLOGY. WE THINK IT IS GOING TO BE AN IMPORTANT PART OF HP SOFTWARE’S GROWTH STRATEGY, BUT IT IS NOT BEEN AS VALUABLE AS WE HAD BELIEVED IT TO BE BECAUSE REVENUES ARE LOWER, GROWTH RATE, WE BELIEVE, WILL BE SLOWER, AND THE MARGIN IS NOT WHAT WAS REPORTED, WHICH WAS IN A 40 TO 45% RANGE. WE NOW THINK MORE OF A 28 TO 30% RANGE. AND AS YOU KNOW WHEN YOU DO A TEN YEAR DISCOUNTED CASH FLOW YOU COME UP WITH A QUITE DIFFERENT VALUATION AND THE PORTION OF THE RIGHT DOWN THAT WE BELIEVE IS AN EXCESS OF FIVE BILLION DOLLARS BASED ON MISSTATED FINANCIALS WHEN AUTONOMY WAS A PUBLIC COMPANY.

FABER: NOW YOU WERE OF COURSE ON THE BOARD OF HEWLETT-PACKARD AT THE TIME AND AGREED THAT THE DEAL WAS ONE THAT SHOULD BE UNDERTAKEN. DO YOU REGRET THE DECISION ON YOUR PART AND ON THE PART OF THE BOARD AT THAT TIME?

WHITMAN: WELL, OBVIOUSLY WITH 20/20 HINDSIGHT WE ARE DISAPPOINTED BY THIS NEWS. WHAT I WILL TELL YOU IS OUR DUE DILIGENCE WAS THOROUGH. WE RELIED ON AUDITED FINANCIALS BY DELOITTE. NOT EXACTLY BRAND X ACCOUNTING FIRM, AND THAT IS WHAT YOU DO WHEN YOU ARE ON A BOARD YOU RELY ON THE RECOMMENDATIONS OF MANAGEMENT AND THE FINANCIALS AUDITED BY A LEGITIMATE FINANCIAL ACCOUNTING FIRM. OBVIOUSLY WE ARE DISAPPOINTED. WE FEEL TERRIBLE ABOUT IT. I REGRET THAT I VOTED FOR THIS DEAL BUT WE ARE WHERE WE ARE AND NOW WHAT WE NEED TO DO IS TURN THIS OVER TO THE AUTHORITIES, SEEK REDRESS ON BEHALF OF HP SHAREHOLDERS TO RECOUP WHAT WE CAN. AND THEN WE WANT TO TAKE THE AUTONOMY BUSINESS AND GROWN IT, BECAUSE IT DOES SOLVE A REAL NEED IN THE MARKET PLACE ON BEHALF OF THE CUSTOMERS. THERE IS AN EXPLOSION OF DATA AND THERE IS SOME VERY INTERESTING TECHNOLOGY THAT HELPS COMPANIES MAKE SENSE OF ALL THE DATA OUT THERE IN TERMS OF THEIR MARKETING PLANS AND OTHER IMPORTANT MEANING-BASED COMPUTE OPPORTUNITIES.

FABER: LISTEN, NOBODY EXPECTS A BOARD, AT LEAST MY EXPERIENCE WOULD NOT INDICATE TO ME, THAT A BOARD SHOULD BE EXPECTED TO HAVE THE FORENSIC INTELLIGENCE, SO TO SPEAK, TO UNDERSTAND WHEN A COMPANY IS COMMITTING FRAUD, MY WORD, NOT A WORD YOU GUYS HAVE USED. BUT NONE THE LESS, THERE WERE A LOT OF DOUBTS ABOUT AUTONOMY OUT THERE IN THE MARKETPLACE REGARDLESS IN TERMS OF ITS GROWTH RATE AND A NUMBER OF INVESTORS CERTAINLY WHO WERE QUESTIONING ITS ACCOUNTING. DO YOU RECALL AT ALL, DID THAT COME UP IN ANY OF THE CONVERSATIONS PERHAPS THAT THE BOARD HAD WITH MR. APOTHEKER AT THE TIME WHO WAS THE CEO?

WHITMAN: NOT WHEN I WAS ON THE BOARD. WHAT I DO KNOW IS THAT AFTER WE ANNOUNCED THE ACQUISITION THERE WERE A NUMBER OF BLOGS THAT CAME TO THE FORE ABOUT POTENTIAL ISSUES AT AUTONOMY. THE FORMER MANAGEMENT TEAM RAN THAT TO GROUND AND CAME UP WITH THE CONCLUSION THAT THERE WAS NOTHING THERE. NOW OFTEN IN A CUTTING-EDGE COMPANY LIKE AUTONOMY THERE WILL BE RUMORS LIKE THIS BUT THEY WENT THROUGH WORKING WITH DELOITTE AND KPMG, WHO HP HAD HIRED TO TALK TO DELOITTE ABOUT THESE ISSUES AS WELL AS TALKING TO MIKE LYNCH AND THEY RAN IT TO GROUND AND SAID THERE’S NO THERE THERE. OBVIOUSLY WE KNOW DIFFERENT NOW.

FABER: MEG WE ARE WATCHING THE COMPANY STOCK DECLINE TODAY. HARD TO SAY HOW MUCH OF THAT IS DUE TO THE AUTONOMY NEWS AND HOW MUCH MAY BE DUE TO SIMPLY INVESTORS CONCERNED ABOUT THE FUTURE FOR THE COMPANY SO LET’S GO THERE FOR A MOMENT. YOU HIT YOUR NUMBER OR THE NUMBER THAT ANALYSTS WERE ESTIMATING AT LEAST THE COMPANY WOULD EARN FOR THIS CURRENTLY REPORTED QUARTER. BUT YOU HAVE LOWERED IT WOULD SEEM GUIDANCE FOR THE FIRST HALF OF NEXT YEAR, ALTHOUGH AT THE END OF THE DAY YOU THINK YOU ARE GOING TO MAKE IT UP IN THE SECOND HALF. WHY DO YOU HAVE CONFIDENCE THAT THE SECOND HALF IS WILL BE BETTER THAN THE FIRST HALF OF NEXT YEAR.

WHITMAN: WELL FIRST LET ME SAY, Q4 WAS ACTUALLY A PRETTY GOOD QUARTER FOR HEWLETT-PACKARD. WE GENERATED 4.1 BILLION DOLLARS WORTH OF CASH WHICH IS MORE CASH THAT MANY RESPECTED COMPANIES LIKE DISNEY AND FEDEX AND OTHERS REPORTED IN THEIR MOST RECENT FISCAL YEAR AND WE REDUCED OUR NET DEBT POSITION SIGNIFICANTLY SO WORKING HARD ON RESTORING OUR BALANCE SHEETS. SO I THINK PEOPLE SHOULD FEEL GOOD ABOUT THAT. IN ADDITION, EARNINGS WERE ABOUT FLAT. DOWN ONE PERCENT ON AN EPS BASIS WHICH IS QUITE AN IMPROVEMENT OVER THE 39%, I THINK, WE SAW IN Q1 – 22% AND THEN 9% DECLINE IN Q3. SO YOU CAN SEE WHAT WE ARE DOING IS WE’RE GETTING OUR COST STRUCTURE INLINE WITH OUR REVENUE TRAJECTORY SO THAT’S A REAL ACCOMPLISHMENT FOR THE COMPANY. AS YOU MENTIONED, WE ARE CONFIDENT ABOUT OUR FISCAL 2013 GUIDANCE FROM 3.40 TO 3.60 A SHARE BUT WE ARE GUIDING WHAT WE THINK IS REALISTIC FOR Q1, WHICH IS A TOUGH MACRO-ECONOMIC ENVIRONMENT, A LOT OF OUR SAVINGS, IN TERMS OF OUR SAVINGS PROGRAM, WILL BE BACKEND LOADED BECAUSE A LOT OF THAT IS LABOR NOW MOVING TO EUROPE, WHERE IT IS MUCH MORE DIFFICULT TO SEPARATE PEOPLE AND TAKES LONGER. AND THEN SOME OF OUR NON-LABOR SAVINGS WE’RE INSTITUTING THAT EXECUTIONAL EXCELLENCE AROUND SKEW REDUCTIONS, SUPPLY CHAIN AND THOSE WILL KICK IN IN THE SECOND HALF. BUT PERHAPS MOST IMPORTANTLY WE HAVE SOME FANTASTIC PRODUCT COMING UP AND I THINK I’VE BEEN CLEAR THAT GREAT COMPANIES COME BACK ON THE BACKS OF TERRIFIC PRODUCTS AND THOSE WILL REALLY START TO KICK IN IN THE SECOND HALF.

FABER: WELL YEAH I MEAN MANY WOULD SAY THEY ARE GOING TO HAVE TO. I MEAN TO THOSE WHO WOULD SAY MEG WHAT YOU ARE REALLY DOING IS MANAGING A DECLINING BUSINESS BECAUSE AT THE END OF THE DAY THE RISE OF THE TABLET IS ACTUALLY THE FALL OF THE PC AND PRINTING BECAUSE PEOPLE JUST CARRY THIS THING AROUND WITH THEM EVERYWHERE. HOW DO YOU CHALLENGE THAT ASSUMPTION THAT REALLY ALL YOU ARE DOING IS MANAGING A DECLINING BUSINESS – YOU MAY BE MANAGING IT WELL, BUT THAT’S WHAT IT IS.

WHITMAN: WELL, I’D SAY THERE ARE TWO PIECES OF HEWLETT-PACKARD. THERE IS THE PRINTING AND PC BUSINESS, WHICH THE PRINTING BUSINESS BY THE WAY, I THINK IS A FLAT BUSINESS. WE ARE SEEING ACTUALLY INCREASES IN ENTERPRISE PRINTING AND WE’VE GOT SOME VERY INTERESTING PRODUCTS COMING UP IN THE CONSUMER SPACE. THE PC BUSINESS IS A SLOW GROWTH TO DECLINING GROWTH BUSINESS BUT WE CALL THAT BUSINESS OUR PERSONAL SYSTEMS GROUP WE DON’T CALL IT THE PC BUSINESS AND WE ARE INTRODUCING TABLETS FOR THE CONSUMER AS WELL AS THE ENTERPRISE. WE ARE VERY EXCITED ABOUT ELITE PAD 900, WHICH IS THE FIRST TABLET WE’VE DESIGNED FOR ENTERPRISE. BUT THAT’S ONLY A PORTION OF OUR BUSINESS. 43% OF THE PROFITS OF OUR COMPANY NOW COME FROM WHAT WE CALL ENTERPRISE GROUP, WHICH IS OUR SERVER, STORAGE, NETWORKING, TECHNOLOGY SERVICES GROUP THAT IS DOING SOME VERY INTERESTING THINGS IN SOFTWARE DEFINED NETWORKING. OUR STORAGE BUSINESS IS GROWING DOUBLE DIGIT. OUR HYPER SCALE BUSINESS IN SERVERS IS GROWING VERY FAST AT ALBEIT LOWER MARGINS. SO WE’VE GOT A GROWTH PART OF THIS COMPANY AND THEN A PART THAT’S SLOWER GROWTH THAT WE ARE MANAGING FOR CASH AND THAT’S OK. YOU JUST HAVE TO BE SMART ABOUT HOW YOU MANAGE HP’s PORTFOLIO OF ASSETS AND I THINK AGAIN, WE’VE GOT SOME GREAT PRODUCTS COMING UP THAT I THINK WILL EVENTUALLY TURN THE REVENUE TRAJECTORY OF THE COMPANY AS A WHOLE.

FABER: BUT EVENTUALLY IS A LONG TIME MEG. IN THESE INTERVIEWS THAT WE’VE DONE EVERY QUARTER YOU HAVE MADE THE POINT THAT THIS IS GOING TO BE A LONG TURNAROUND. THREE YEARS, FOUR YEARS, PERHAPS EVEN FIVE YEARS. I WOULD ASSUME YOU STILL BELIEVE THAT’S THE CASE.

WHITMAN: I DO. WE ARE ONE YEAR INTO A FIVE YEAR JOURNEY. WE’VE SAID 2013 IS A FIX AND REBUILD YEAR AND THAT YOU WILL START TO SEE REVENUE GROW AGAIN IN 2014 AS OUR PRODUCTS HIT THE MARKET IN A REALLY MEANINGFUL WAY. WE’VE MADE SOME OF THOSE INVESTMENTS IN TERMS OF OUR ABILITY TO DO BUSINESS WITH THE CHANNEL, A REVAMP OF OUR GO TO MARKET. SO I THINK IN 2014 YOU WILL START TO SEE REVENUE GROWTH ON INTO 2015 AND 2016 BUT WE HAVE BEEN VERY CLEAR THAT THIS IS A JOURNEY. HP DIDN’T GET INTO THIS SITUATION OVER NIGHT, IT TOOK A WHILE AND IT IS GOING TO TAKE US A WHILE TO GET BACK. BUT I HAVE TO TELL YOU I FEEL GREAT ABOUT THE HP EMPLOYEE BASE. WE HAVE A VERY TALENTED GROUP OF FOLKS AND I FEEL GOOD ABOUT OUR PRODUCTS.

FABER: I KNOW MEG BUT HOW IS—I MEAN JUST IN TERMS OF THEIR MOOD RIGHT NOW, WATCHING A STOCK PRICE AT A 12 YEAR LOW A 22 BILLION DOLLAR MARKET VALUE ON THIS ICONIC COMPANY SEEMS HARD TO IMAGINE. I WOULD ASSUME THAT’S GOT TO BE AFFECTING MORALE AT THIS POINT. NOT TO MENTION THE FACT THAT YOU FIND FRAUD, MY WORD, NOT YOURS, AT A COMPANY YOU BOUGHT A LITTLE MORE THAN A YEAR AGO.

WHITMAN: SO LISTEN WE’VE BEEN INCREDIBLY TRANSPARENT IN OUR COMMUNICATIONS TO EMPLOYEES AND YES EMPLOYEES ARE VERY DISAPPOINTED ABOUT THE PERFORMANCE OF THE COMPANY. VERY DISAPPOINTED ABOUT THE STOCK PRICE. BUT THERE IS A COMMITMENT AND A RESILIENCE TO HP EMPLOYEES THAT I THINK THEY ARE GOING TO SEE US COME BACK HERE IN A VERY MEANINGFUL WAY AND IT IS NOT QUICK AND IN TODAY’S MARKET PEOPLE WANT A QUICK FIX. THERE IS NO QUICK FIX HERE. THERE IS NO SILVER BULLET. BUT I KNOW THAT WHEN YOU LINE UP 300,000 HP PEOPLE AGAINST A MISSION, I THINK WE ARE GOING TO DELIVER HERE AND I THINK PEOPLE WILL LOOK BACK AND BE SURPRISED BUT WE HAVE TO MANAGE EXPECTATIONS ABOUT HOW LONG THIS WILL TAKE. PART OF THE WAY HP GOT INTO TROUBLE IS SHORT-TERM FIXES THAT DIDN’T ACTUALLY LAY THE FOUNDATION FOR THE NEXT FIVE YEARS OF HP. AND YOU’VE GOT TO BUILD FOR THE FUTURE HERE. YEAH, COULD YOU PUMP UP EARNINGS FOR NEXT QUARTER OR NEXT YEAR? YOU SURE COULD, BUT IT WOULDN’T LAY THE FOUNDATION FOR WHAT WE MUST HAVE IN TERMS OF THE FOUNDATION TO BUILD THE NEXT GENERATION OF HP PRODUCTS.

MELISSA LEE: MEG, SOME CRITICS OUT THERE MIGHT SAY THAT INTRODUCING A TABLET NEXT SPRING IS NOT EXACTLY LAYING THE GROUND WORK FOR A FUTURE THAT’S FIVE YEARS OUT GIVEN THAT THE TABLET HAS EXISTED AND HAS ALREADY GAINED SO MUCH PENETRATION AMONG CONSUMERS. WHAT CAN YOU SAY ABOUT THE NEXT GENERATION OF PRODUCT, THE FUTURE PRODUCT, BEYOND THE TABLET NEXT SPRING, THAT HP HAS GOT IN THE WORKS?

WHITMAN: SO, WITH REGARD TO OUR PERSONAL SYSTEMS GROUP, WE’VE GOT TWO TABLETS – CONVERTIBLES, WHICH I THINK IS THE NEXT GENERATION FORM FACTOR. LISTEN, A LOT OF PEOPLE WANT TABLETS, BUT I KNOW MOST PEOPLE END UP CARRYING A LAPTOP PLUS A TABLET, PLUS A SMARTPHONE. SO WE CAN OBVIATE THAT NEED BY GIVING THEM A GREAT LAPTOP THAT IS ALSO A TABLET, WHICH IS WHAT OUR ENVY X2 PROVIDES. I’M EXCITED ABOUT THAT NEXT GENERATION OF FORM FACTOR. AND THEN WHAT YOU SEE IN JANUARY, IS OUR TABLET DESIGN FOR ENTERPRISE. THIS IS A TABLE THAT HAS A 10 AND A HALF HOUR BATTERY LIFE, WITH IT’S SMART JACKETS, IT’S GOT ANOTHER TEN AND A HALF HOUR BATTERY LIFE, IT IS BUILT FOR THE ENTERPRISE, YOU CAN SERVICE IT, YOU CAN TAKE OFF THE BACK AND CHANGE OUT THE MOTHERBOARD, AS WELL AS THE SCREEN AND IT HAS ALL THE SECURITY FEATURES THAT THE ENTERPRISE WANTS. AND WE ARE GOING TO CONTINUE TO BE INNOVATIVE ON OUR FORM FACTORS AND WHAT CONSUMERS, WHICH BY THE WAY, EMPLOYEES ARE CONSUMERS TOO, WHAT CONSUMERS AND EMPLOYEES WANT IN THEIR PERSONAL DEVICES. MY VIEW IS, THE NEED TO CREATE, CONSUME AND SHARE IS NOT DECLINING THAT IS ACTUALLY GROWING. THE NEED FOR COMPUTE IS GROWING AND WE’VE GOT TO HAVE THE RIGHT FORM FACTORS AND THE RIGHT PRODUCTS. I’LL TELL YOU, I AM EQUALLY EXCITED ABOUT THE ENTERPRISE SIDE OF OUR BUSINESS IN TERMS OF WHAT WE ARE DOING IN TERMS OF STORAGE AND NETWORKING.

FABER: MEG, FINALLY, I MEAN TO PUT IT BLUNTLY, CERTAINLY THE LAST FOURTEEN MONTHS OR SO THAT YOU HAVE BEEN RUNNING THIS COMPANY HAS NOT BEEN EASY. IS THIS THE WORST IT IS GOING TO GET? CAN YOU MAKE A PROMISE HERE TO INVESTORS PERHAPS, THAT YOU KNOW, NO MORE BOMBSHELLS IN TERMS OF ACCOUNTING AND NOTHING UNEXPECTED ON THE EARNINGS FRONT?

WHITMAN: LISTEN YOU KNOW, I KNOW WHAT I KNOW TODAY, AND I FEEL GOOD ABOUT HP’S POSITION. I FEEL GOOD ABOUT OUR PRODUCTS, I FEEL GOOD ABOUT HOW WE HAVE REORGANIZED OURSELVES, I FEEL GOOD ABOUT THE INVESTMENTS THAT WE ARE MAKING. BUT THIS IS A TURNAROUND, AND TURNAROUNDS CAN BE UNPREDICTABLE. AS I SIT HERE TODAY DAVID, I DON’T SEE ANYTHING ON THE HORIZON, I THINK WE’VE GOTTEN THE BAD NEWS BEHIND US, BUT IN A TURNAROUND, YOU NEVER KNOW EXACTLY WHAT IS COMING AT YOU. AND I’VE DONE A COUPLE OF TURNAROUNDS IN MY CAREER, AND YOU HAVE TO BE PREPARED FOR THE UNEXPECTED. AS I SAID, I DON’T SEE ANYTHING AS I SIT HERE TODAY, BUT WE ARE IN THE MIDDLE OF A TURNAROUND.

FABER: I WOULD ASSUME IN MID-MAY BEFORE YOU LEARNED OF THIS, YOU PROBABLY DIDN’T EXPECTED IT EITHER. IN TERMS OF THE AUTONOMY.

WHITMAN: I DID NOT.

FABER: DID YOU THINK AT THE TIME, WHAT DID I GET MYSELF INTO?

WHITMAN: YOU KNOW LISTEN, I KNEW I WAS GETTING MYSELF INTO A TURNAROUND, AND I DID IT BECAUSE I CARED ABOUT HEWLETT-PACKARD. I CARED WHAT HAPPENED TO THIS COMPANY. IT IS IMPORTANT TO THE TECHNOLOGY INDUSTRY, I WOULD ARGUE THAT IT IS IMPORTANT TO EVERY COMMUNITY IN WHICH WE DO BUSINESS. AND I’M PROUD TO LEAD THIS GREAT COMPANY. WE ARE GOING TO BRING THIS COMPANY BACK, WE’VE GOT DEDICATED EMPLOYEES, BUT IT IS A REAL CHALLENGE. I HAVE TO SAY. AND USUALLY THINGS THAT ARE WORTH DOING ARE A CHALLENGE, AND THIS CERTAINLY IS ONE.

FABER: AND TO THOSE WHO RAISE THE CRY YET AGAIN THAT THEY SHOULD BREAK IT UP – IT’S TIME TO JUST RETURN WHATEVER VALUE IS LEFT IN THIS COMPANY TO SHAREHOLDERS, WHAT WOULD YOU SAY?

WHITMAN: I WOULD SAY THAT I BELIEVE THAT THE PARTS OF HP ARE BETTER TOGETHER. IF WE MANAGE OUR PORTFOLIO OF ASSETS – PRINTING, PCS, SERVER STORAGE AND NETWORK – WE ARE VERY CONSCIOUS ABOUT INVESTING APPROPRIATELY FOR THE RIGHT RETURN ON INVESTED CAPITAL, WE MANAGED SOME BUSINESSES FOR LOWER GROWTH IN CASH, SOME BUSINESSES FOR GROWTH, THEN THAT’S VERY RESPONSIBLE. THERE ARE GO TO MARKET SYNERGIES, THERE’S SUPPLY CHAIN SYNERGIES, AND SO I FEEL THAT THIS IS THE RIGHT STRATEGY TO KEEP THIS BUSINESS TOGETHER. AND MY VIEW IS, WE WILL SEE THE RESULTS OF THAT IN 2014.

FABER: ALRIGHT, WELL WE WILL SEE YOU I’M SURE BEFORE THEN. WE ALWAYS APPRECIATE THE FACT THAT YOU ARE WILLING TO COME ON. MEG, THANK YOU AGAIN, AS ALWAYS.

WHITMAN: THANK YOU.