Tomahawk, WI 11/01/2013 (BasicsMedia) – Hewlett-Packard Company (NYSE: HPQ) needs every single cent. Credit must be given to HPQ that it has faced a very bad year but is still bidding for more work across the world. One such award saw HPQ given the right to maintain the communications network of the U.S Navy. Even though Harris Corp challenged this deal in court, the U.S courts maintained that nothing wrong or untoward took place in awarding HPQ this contract. This is good news for HPQ bearing in mind that the deal is worth an astronomical $3.5 billion, thus creating more revenue for it.

HPQ’s Deal With U.S Navy To Last 5 Years

The deal accorded to HPQ to maintain the U.S Navy’s communications network is to run for the next five years. In essence, the deal assures HPQ of constant and consistent revenue from the U.S Navy for the next five years without fail. Consequently, it needs to focus on winning more of such awards in order to help the company recover from poor financial results that are a result of dwindling PC sales across the globe. Such awards indicate that HPQ is willing to refocus on diversification instead of being too beholden to PC sales that are on a serious long-term drop.

Sailors and marine officials working for the U.S. Navy now get the chance to enjoy the use of modern technology while performing their daily chores and responsibilities. HPQ often enjoys contracts from the U.S federal government. It is the 28th largest federal contractor in the U.S. The deals it gets from the government average around $2.6 billion in 2012, and the figure will continue rising going forward. The current deal, which will add not less than $3.5 billion to HPQ’s coffers, is lucrative for the company and I believe it should pursue more of the same.

HPQ To Collaborate with Other Tech Giants

HPQ is in collaboration with other tech giants to provide maintenance services to the communications networks of the U.S Navy. These tech giants include Northrop Grumman Corp, AT&T INC, International Business Machines Corp, and Lockheed Martin Corp. HPQ continues to pursue other businesses of real interest as well. It is good to see HPQ moving on to increase its products and develop new ones to replace the share of the market it lost through its excessive focus on PC sales. I believe it cannot continue ignoring the Smartphone and tablet markets.

HPQ, just as it has happened with Dell, has lost a significant share of the market to Intel. It needs to build products whose quality is not in doubt to compete with what Intel has in the market. In order to achieve this, it has to find a way of co-opting Dell in this war against Intel to build processors that are suitable and very effective in Smartphone gadgets and tablets. This is the next battleground and HPQ has to play its part lest Intel and other makers of processors leave it further behind. It must keep pace with the other major players in this industry.

HPQ is far from dying. It faces numerous challenges, and I am glad to see that it has not buried its head under the sand. HPQ stock is worth adding to any investor’s portfolio.

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