WHEN: TODAY, WEDNESDAY, November 23, 2016
WHERE: CNBC'S "SQUAWK ON THE STREET"
Following are excerpts from the unofficial transcript of a CNBC interview with Hewlett Packard Enterprise CEO Meg Whitman today on CNBC's "Squawk on the Street." Following are links to the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000570508 and http://video.cnbc.com/gallery/?video=3000570507.
All references must be sourced to CNBC.
WHITMAN ON 2016
THE FULL YEAR OF 2016 WAS A VERY GOOD YEAR FOR THE COMPANY. ACTUALLY, ENTERPRISE GROUP, WHICH YOU'RE FOCUSED ON APPROPRIATELY, GREW 3% ON A FULL YEAR BASIS. THE FIRST PART OF THE YEAR WAS VERY RAPID GROWTH WITH SLIGHT – WITH MARGIN PRESSURE. THE SECOND HALF WAS MORE MARGIN, BUT A LITTLE BIT LESS GROWTH. SO WE'VE GOT TO, IN 2017, DO BOTH.
WHITMAN ON THE COMPANY'S PLAN
WE'VE GOT A PLAN. PRETTY SURE WE CAN DO IT. I THINK, LISTEN, THERE ARE A LOT OF CHANGES IN OUR INDUSTRY AND WE ARE A BIG BELIEVER THAT HYBRID I.T. IS GOING TO BE THE STRATEGY GOING FORWARD. SO, YOU KNOW, COMPANIES WILL DECIDE WHAT APPLICATIONS AND WORKLOADS THEY WANT IN THEIR DATA CENTER, WHAT THEY WANT ON PREM, WHAT THEY WANT IN A MANAGED SERVICE AND WHAT THEY WANT IN PUBLIC CLOUD. AND WE'VE GOT TO BE ABLE TO DO ON PREM PRIVATE CLOUD AT PUBLIC CLOUD LIKE ECONOMICS AND WERE GETTING VERY CLOSE TO THAT.
WHITMAN ON THE DOLLAR
THE CURRENCY HEADWINDS ARE VERY REAL. BECAUSE WHEN THE DOLLAR IS STRONG, OUR GOODS ARE MORE EXPENSIVE OVERSEAS. AND SO, LET'S SAY SOMEONE IN EUROPE WAS GOING TO BUY 1,000 SERVERS, NOW MAYBE THEY'D ONLY BUY 800 BECAUSE THE DOLLAR IS SO STRONG. SO, LISTEN, WE'VE GOT TO MANAGE THAT. THAT'S PART OF OUR NEW REALITY. WE'VE GOT TO GET OUR COST STRUCTURE IN LINE.
WHITMAN ON REPATRIATION
IT WOULD MAKE AMERICA A MORE TAX COMPETITIVE PLACE TO BE. AND WE, LIKE SO MANY COMPANIES, NOT JUST TECH COMPANIES, WE HAVE A LOT OF CASH OFFSHORE, WHICH WE WOULD BRING BACK. WHICH WE WOULD EITHER USE FOR INVESTMENT OR TO SHARE BUYBACK OR REPURCHASE. SO THOSE TWO THINGS WOULD BE VERY HELPFUL TO HEWLETT PACKARD ENTERPRISE AND I THINK BUSINESS IN GENERAL.
WHITMAN ON TRUMP POLICIES
CORPORATE TAX RATE REDUCTIONS TO MAKE US MORE COMPETITIVE ON A WORLD STAGE WOULD BE HELPFUL. A TAX HOLIDAY ON ALL THE CASH THAT WE HAVE OVERSEAS, BRINGING THAT BACK AT A 10% RATE, THAT WOULD BE HELPFUL TO US AS WELL. SOME OF THE TRADE ISSUES AROUND PUTTING A BIG TARIFF ON GOODS THAT ARE MADE OUTSIDE THE UNITED STATES COMING INTO THE UNITED STATES WOULD BE PROBLEMATIC. WE'D HAVE TO COMPLETELY CHANGE OUR SUPPLY CHAIN. AND THEN FINALLY, IMMIGRATION. YOU KNOW, H1-B VISAS ARE VERY IMPORTANT TO THE TECHNOLOGY INDUSTRY. AND IF THOSE VISAS WERE LIMITED DRAMATICALLY, WE'D HAVE TO RETHINK HOW WE DID R&D.
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