WHEN: TODAY, FRIDAY, February 24, 2017
WHERE: CNBC'S "SQUAWK ON THE STREET"
Following are excerpts from the unofficial transcript of a CNBC EXCLUSIVE interview with Meg Whitman, Hewlett Packard Enterprise CEO, on CNBC's "Squawk on the Street" today. Following are links to video of the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000596046 and http://video.cnbc.com/gallery/?video=3000596047.
All references must be sourced to CNBC.
WHITMAN ON EARNINGS
IT WAS A MIXED QUARTER. GOOD NEWS AS YOU MENTIONED WE DELIVERED EPS AT HIGH END OF OUR GUIDANCE. WE ALSO HAD BETTER FREE CASH FLOW THAN WE ANTICIPATED, BUT REVENUE WAS LIGHT. AND THERE WERE A COUPLE HEADWINDS, ONE WAS THE MARKET IS A LITTLE BIT SOFT FOR SURE, BUT SECONDARILY, FOREIGN EXCHANGE AND COMMODITY PRICES AND ACTUALLY COMMODITY AVAILABILITY IN THE FORM OF MEMORY.
WHITMAN ON UNCERTAINTY
AROUND THE WORLD I WOULD SAY THE MACRO ECONOMIC ENVIRONMENT IS UNCERTAIN. AND UNCERTAINTY FOR BUSINESS IS NEVER A GOOD THING BECAUSE THEN PEOPLE SAY, WELL, REALLY DO I NEED TO REFRESH THAT DATA CENTER, SHOULD I MAKE THAT NEXT INVESTMENT IN MODERNIZING MY INFRASTRUCTURE? SO UNCERTAINTY IS NOT OUR FRIEND, BUT I'M NOT TERRIBLY WORRIED ABOUT THAT. I THINK WE'VE GOT THE RIGHT PRODUCT LINE. WE'VE GOT A SET OF NEW PRODUCTS. WE ARE NOW ORGANIZED TO DELIVER AGAINST A MUCH MORE FOCUSED BUSINESS.
WHITMAN ON HPE
WHAT WILL BE THE REMAINING COMPANY, THE GO FORWARD HEWLETT-PACKARD ENTERPRISE, THAT BUSINESS WILL GROW IN 2017 WITH THE POSSIBLE EXCEPTION OF ONE CAVEAT TIER ONE PROVIDER SERVICE BUSINESS WHICH DIDN'T MATERIALIZE AS WE ANTICIPATED IN Q1, AND WE'LL SEE WHAT HAPPENS IN Q2, Q3, AND Q4.
WHITMAN ON EXECUTION
I PRIDE MYSELF ON EXECUTION. AND IT WASN'T PERFECT THIS QUARTER. THERE'S NO QUESTION I HAVE PUSHED THIS ORGANIZATION TO PROBABLY THE LIMITS IN TERMS OF THEIR ABILITY TO ACCEPT AND CREATE AND DEAL WITH CHANGE. THE GOOD NEWS IS, WHEN THE DUST SETTLES, THIS MAKES US A MUCH STRONGER COMPANY. SO IT WAS ABSOLUTELY THE RIGHT THING TO DO. BUT I MIGHT HAVE LOADED A LITTLE BIT TOO MUCH ON IN Q1.
WHITMAN ON BORDER TAX
THERE'S A NUMBER OF US THAT ARE PRETTY CONCERNED ABOUT THIS. WE'RE WORKING CLOSELY WITH, YOU KNOW, CONGRESS AND THEIR STAFFS TO MAKE SURE THAT OUR POINT OF VIEW HERE IS WELL UNDERSTOOD. BECAUSE MY VIEW IS THIS ACTUALLY DOES NOT CREATE JOBS. IT ACTUALLY LOWERS THE NUMBER OF JOBS FOR MANY, MANY COMPANIES.
WHITMAN ON SUPPLY CHAIN
THE ENTIRE SUPPLY CHAIN, EVERYTHING FROM MEMORY, FROM MOTHER BOARDS, EVERYTHING THAT IS IN OUR PRODUCTS COMES FROM OVERSEAS. AND BY THE WAY, THAT SUPPLY CHAIN HAS TAKEN 30 YEARS TO SET UP. SO WHEN ALL THOSE COMPONENTS COME IN AND ARE TAXED, IT'S NOT GOING TO BE GOOD FOR COMPANIES THAT HAVE A RELATIVELY LOW MARGIN AND A BIG OFFSHORE SUPPLY CHAIN.
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