CNBC INTERVIEW: CNBC'S BILL GRIFFETH SPEAKS WITH LEO APOTHEKER TODAY ON CNBC'S "CLOSING BELL WITH MARIA BARTIROMO"

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When: Today, February 22, 2011

Where: CNBC's "Closing Bell with Maria Bartiromo"

Following is the unofficial transcript of a CNBC Interview with Leo Apotheker, Hewlett-Packard President & CEO, today on CNBC's "Closing Bell with Maria Bartiromo."

All references must be sourced to CNBC.

BILL GRIFFETH: I'M GOING TO SPEAK FOR JUST A FEW MINUTES WITH THE NEW CEO OF HEWLETT-PACKARD. WE'RE VERY PLEASED TO BRING TO YOU, BEFORE HE SPENT TIME WITH ANALYSTS AFTER THESE NUMBERS CAME OUT, CEO LEO APOTHEKER. MR APOTHEKER THANK YOU FOR JOINING US.

LEO APOTHEKER: HI BILL HOW ARE YOU?

GRIFFETH: I'M DOING FINE. HOW WOULD YOU CHARACTERIZE THE Q1?

APOTHEKER: WELL OUR Q1 RESULTS DEMONSTRATE THE POWERFUL OPPERATING LEVERAGE OF HEWLETT-PACKARD AND THE DIVERSITY OF OUR PORTFOLIO. WE GREW REVENUE BY 4%, OUR GROWTH PROFIT IS UP BY 10%, OPERATING PROFIT UP BY 14% AND CASH FLOW FROM OPERATIONS AND EPS WERE BOTH UP MORE THAN 20%. SO STRONG MODEL AND STRONG EXECUTION.

GRIFFETH: GIVEN THE VISION THAT YOU ARE STILL FORMULATING THAT YOU WILL ESPOUSE ON MARCH 14TH, THE AREAS OF WEAKNESS THAT YOU ANTICIPATE, THE AREAS OF STRENGTH THAT YOU ANTICIPATE, DID YOU GET ANY SURPRISES FROM THIS QUARTER OR ANYTHING THAT REINFORCED YOUR FIRST IMPRESSIONS OF HEWLETT-PACKARD?

APOTHEKER: YOU KNOW, IT'S MY FIRST QUARTER IN THE COMPANY AND I'M HAPPY TO CONFIRM THAT OUR BUSINESS MODEL CAN SUSTAIN OUR EARNINGS POWER. IF YOU LOOK ACROSS THE PERFORMANCE OF Q1 YOU WILL SEE THAT WE EXECUTED REALLY WELL IN ENTERPRISE SERVICE AND STORAGE AND IN NETWORKING. OUR -- INFRASTRUCTURE STRATEGIES WORKING WELL, OUR ORGANIC INNOVATION-- CONTINUE TO DELIVER VALUE TOO AND IN IPG WE ARE DOING REALLY WELL AS WELL IN OUR PRINTING BUSINESS. SO ON THE COMMERCIAL SIDE WE'RE DOING EXTREMELY WELL. WE HAD A COUPLE OF WEAKER AREAS IN THE BUSINESS THIS QUARTER. ONE IS THE CONSUMER SIDE OF THE PC BUSINESS BUT THAT'S A MARKET-DRIVEN EVENT AND ON OUR SERVICE SIDE, WE NEED TO GET A LITTLE BIT BETTER ON OUR VALUE-ADDED SERVICE. BUT IN GENERAL WE HAVE A STRONG PORTFOLIO AND WHAT WE'LL BE TALKING ABOUT ON MARCH 14TH IS STRATEGIES TO BRINGING IT ALTOGETHER.

GRIFFETH: THE WORD I HEAR MOST OFTEN FROM ANALYSTS AND I JUST HEARD IT AGAIN FROM LOUIS MISCIOSCIA HERE, THE WORD MARGINS YOU'VE GOT TO FIND WAYS AT HEWLETT-PACKARD TO EXPAND YOUR MARGINS. YOU HAVE ALREADY SAID THAT PUBLICLY AS WELL IN EARLY INTERVIEWS SINCE YOU BECAME CEO. AT THIS POINT IS THAT A HUGE GOAL OF YOURS OR HOW DO YOU PLAN TO DO THAT?

APOTHEKER: YOU KNOW, IT'S A GREAT QUESTION. HEWLETT-PACKARD NEEDS TO REALLY WORK ON GETTING ITS COST MARGINS CONTINUOUSLY UP WHICH DID A GREAT JOB IN Q1. WE EXPANDED OUR GROSS MARGINS AND WE'LL CONTINUE TO DO THAT AND WITH ALL OF THE SHIFTS HAPPENING IN THE INDUSTRY, I THINK WE HAVE A GREAT OPPORTUNITY TO DRIVE THAT GROSS MARGIN TREND UPWARD EVEN MORE.

GRIFFETH: LET ME ASK YOU ABOUT VARIOUS CATEGORIES. YOU'VE GOTTEN INTO A NETWORKING GEAR THAT COMPETES WITH CISCO. HAVE YOU SEEN EVIDENCE THAT YOU ARE GAINING SHARE THERE?

APOTHEKER: I BELIEVE WE DID. WE GREW OUR NETWORKING GEAR BY ABOUT 30% YEAR OVER YEAR. THAT SHOULD BE A SIGNIFICANT INCREASES IN MARKET SHARE. WE'LL WAIT UNTIL WE GET THE FINAL NUMBERS BUT WE'RE DOING EXTREMELY WELL. OUR NETWORKING SWITCHING AND ROUTING REVENUE IS PERFORMING EXTREMELY WELL.

GRIFFETH: ONE OF YOUR AREAS OF STRENGTH, OBVIOUSLY COMING FROM S.A.P., A PREMIERE SOFTWARE COMPANY YOU WANT TO SEE HEWLETT-PACKARD GET MORE INTO SOFTWARE. DO YOU DO THAT INTERNALLY OR DO YOU NEED TO MAKE MORE ACQUISITIONS TO GET INTO THAT AREA MORE DEEPLY?

APOTHEKER: SOFTWARE IS A VERY IMPORTANT COMPONENT OF OUR PORTFOLIO, BE IT AS A BUSINESS, I.P FOR I.P., OR BE IT AS THE ELEMENT THAT WE WILL USE TO ADD VALUE TO ALL OF THE OTHER ELEMENTS OF OUR PORTFOLIO. WE ARE READY TO PRODUCE QUITE A LOT OF SOFTWARE. WE RECENTLY MADE SOME ACQUISITIONS IN THE SOFTWARE SPACE AND ARE TURNING OUT TO BE REAL WINNERS IN THE SECURITY SPACE AND YOU WILL SEE THE SOFTWARE PORTFOLIO ORGANICALLY AND, IF NECESSARY, ALSO INORGANICALLY AS WE MOVE FORWARD.

GRIFFETH: CAN YOU GIVE US A SENSE GEOGRAPHICALLY HOW YOU DID IN BUSINESS? I KNOW YOU HAVE SAID ALREADY THAT HEWLETT-PACKARD REALLY NEEDS TO EXPAND INTERNATIONALLY. BUT CAN YOU GIVE US A SENSE OF HOW ECONOMICALLY VARIOUS -- THE MARKETS THAT YOU'RE IN RIGHT NOW ARE DOING?

APOTHEKER: WE HAD A BALANCE PERFORMANCE ACROSS ALL OF THE REGIONS, IF YOU LOOK AT IT IN CONSTANT CURRENCY WHICH IS THE ONLY WAY TO MEASURE THAT. WE HAD DOUBLE DIGIT GROWTH IN BRIC COUNTRIES. IN FACT, ONE WOULD EXCLUDE OUR PARTICULAR CHINA SITUATION IN THE PC BUSINESS THE BRIC COUNTRIES ACTUALLY GREW BY ABOUT 30% SO WE HAVE TO DO WELL BUT I WANT TO AFFIRM, ONCE AGAIN, THAT WE CAN DO MUCH BETTER IN THESE COUNTRIES AND WE'LL BE PUTTING PLANS TOGETHER TO ACTUALLY OUT EXECUTE ANYONE ELSE IN THESE MARKETS.

GRIFFETH: THE -- PROBABLY THE HOTTEST CONSUMER PRODUCT IN TECHNOLOGY IS THE TABLET. HP HAS A TABLET COMING OUT RUMOR HAS IT THAT YOU'LL BRING IT OUT EARLIER RATHER THAN LATER. YOU HAD EARLIER SAID MAYBE THIS SUMMER BUT NOW THE TALK IS THAT IT WILL BE APRIL. CAN YOU GIVE US MORE INFORMATION ON WHEN THE HP TABLET WILL BE OUT?

APOTHEKER: WE HAVEN'T CHANGED OUR PLANS. WE STICK TO OUR PLANS. WE HAVE AN EXCITING TABLET COMING OUT. ACTUALLY, WE HAVE AN EXCITING SUITE OF WEB O.S. PRODUCTS COMING OUT. AND WE HAVEN'T CHANGED OUR PLANS TO RELEASE THEM ANY SOONER.

GRIFFETH: SO YOU'RE STILL PLANNING TO BRING THEM OUT THIS SUMMER SOMETIME?

APOTHEKER: WE HAVEN'T GIVEN A PRECISE DATE BUT THAT RANGE IS MORE ACCURATE.

GRIFFETH: ALL RIGHT.YOU SAID AFTER YOU WERE APPROACHED LAST FALL TO TAKE OVER HP THAT YOU HAD TO THINK ABOUT IT FOR A WHILE, WERE YOU UP TO THIS NOW THAT YOU'VE GOTTEN A FEW MONTHS UNDER YOUR BELT, WHAT DO YOU MAKE OF THIS TECHNOLOGY COMPANY AND HOW YOU ARTICULATE YOUR VISION AT THIS POINT? YOU'VE SAID THAT YOU NEED TO FIND A WAY TO LET THE WORLD KNOW WHAT HP IS ALL ABOUT. AT THIS POINT, WHAT IS THAT?

APOTHEKER: WELL, HP IS A FORMIDABLE COMPANY THAT BRACES ALMOST EVERY PART OF TECHNOLOGY THAT YOU CAN THINK ABOUT. SO THERE ARE VERY FEW COMPANIES, IF ANY, ON THE ENTIRE PLANET WHO HAVE THE BREADTH AND REACH OF HP AND WE WILL CONTINUE TO EXPLOIT THAT AND PULL IT TOGETHER AND STRENGTHEN IT AS WE MOVE FORWARD. I WILL BE SHARING A LOT OF THE QUESTIONS THAT YOU'VE BEEN ASKING ME ABOUT ON MARCH 14th AND CONSIDER THIS TO BE AN INVITATION TO COME OUT SAN FRANCISCO. WE'LL HAVE A GREAT CHAT ABOUT ON MARCH 14TH AND I'LL TRY TO GIVE EVERYONE A BIT OF A BETTER SENSE ON HOW HP'S STRATEGY IS GOING TO EVOLVE, HOW WE VIEW CLOUT, HOW WE VIEW PRODUCTIVITY, HOW THE BELIEVE THE PORTFOLIO CAN BE PUT TOGETHER TO MAKE A LOT OF THINGS HAPPEN. BUT AT THIS MOMENT IN TIME I WOULD JUST LIKE TO SAY IT'S A GREAT COMPANY AND I'M VERY PROUD TO BE HERE.

GRIFFETH: UNDERSTANDABLE. WE NEVER TURNED DOWN AN OPPORTUNITY TO GO TO SAN FRANCISCO WHEN WE CAN. MR. APOTHEKER, WE APPRECIATE YOU TAKING THE TIME TO SPEAK WITH US.

APOTHEKER: THANK YOU FOR TAKING ME.

GRIFFETH: LEO APOTHEKER, THE NEW CEO.

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