HP Switches Out Key Executive As Third-Quarter Revenue Slides 8 Percent

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Hewlett-Packard Co replaced Dave Donatelli with Bill Veghte at the helm of its second-largest business division on Wednesday, reassigning the star executive to a new role identifying potential tech acquisitions as it reported a larger-than-expected 8 percent slide in third-quarter revenue.

File photo of the HP logo outside Hewlett-Packard Belgian headquarters in Diegem

Hewlett-Packard Co replaced Dave Donatelli with Bill Veghte at the helm of its second-largest business division on Wednesday, reassigning the star executive to a new role identifying potential tech acquisitions as it reported a larger-than-expected 8 percent slide in third-quarter revenue.

The world's largest personal computer maker recorded revenue of $27.2 billion in the fiscal third quarter, down from $29.7 billion a year earlier, as PC sales continued to slide and its enterprise computing business grappled with tepid worldwide IT spending.

It missed the $27.3 billion that Wall Street had expected, on average.

Donatelli, a rising star that Wall Street analysts once considered a candidate for a tech CEO position, relinquishes his post as chief of the Enterprise Group. He will now focus on identifying early-stage technologies for investment, the company said.

Veghte, HP's chief operating officer, takes over effective immediately.

Shares in the company slid more than 2 percent to $24.87 in after hours trade, from a close of $25.38 on the New York Stock Exchange.

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