) is winning contracts at regular intervals, the latest being a
deal with London's Deluxe Digital Cinema. The company will be
working in collaboration with HP to improve the speed, security
and quality of its feature films and also the trailer
Under this seven-year agreement, the HP Business Exchange
Services (BES) content distribution systems will be used by
Deluxe Digital in combination with HP Enterprise Cloud Services
which will help the distribution of feature films from an initial
3,000 cinemas across Europe in the next 18 months. The numbers
are expected to increase to a total of 8,600 cinemas within a
span of five years.
Currently, the entire process of movie trailer distribution is
manual, using hard drives and satellites. With the help of HP's
solutions Deluxe Digital will now be able to improve the
distribution process of movies across Europe. This new
distribution system has the capability of transmitting petabytes
of data each month which will help satisfy the current
There have been a number of positives for HP in the past few
months, including a series of deal wins over the last couple of
months, which have led to an upward movement in analyst
Moreover, the company continues to woo customers, with some
new BPO (business process outsourcing) solutions, a host of
desktop printers, two media players and a customized mobile
application for the U.S. Department of Housing and Urban
Development. This marks the transition of the company from the
low-end PC business to other high-margin businesses.
Apart from that, Hewlett-Packard has come up with some work
priorities for 2013. These include five areas of growth such as
Sales Coverage, Emerging Markets like the BRIC countries, Digital
Printing (currently used by companies for enhancing their image
outputs), Mobile Computing and Next-Generation Data Center
handling. These are some of the key growth areas the company is
focusing on to further improve its business volume from this
segment in 2013.
Moreover, HP's restructuring activities helped the company to
reduce the cost structure and realign the workforce, which should
improve its profitability.
Hewlett-Packard carries a Zacks Rank #3 (Hold).
Investors can consider other companies' stocks, such as,
) carrying a Zacks Rank #1 (Strong Buy) and
Hutchinson Technology Inc.
Western Digital Corp.
), both carrying a Zacks Rank #2 (Buy).
HEWLETT PACKARD (HPQ): Free Stock Analysis
HUTCHINSON TECH (HTCH): Free Stock Analysis
SANDISK CORP (SNDK): Free Stock Analysis
WESTERN DIGITAL (WDC): Free Stock Analysis
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