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Despite HP's Storage Refresh, CEO Mark Hurd Says Business Has 'Issues'

Storage remains Hewlett-Packard's Achilles' heel and now its struggling business has the ire of Mark Hurd, the company's new president and CEO. The good news is HP this week has updated its portfolio with the largest refresh of storage products in the company's history.

Speaking in his inaugural earnings call Tuesday evening, Hurd said turning around the company's struggling storage business is a key priority.

"We have issues in storage," Hurd said candidly. "We have not made enough progress in building out our specialist sales force, and we are not closing enough deals in the field. We have a lot of work in storage to do to get this business back."

For its second fiscal quarter of 2005 ended April 30, HP reported storage revenues of $825 million, a decline of 6 percent over the same period last year.

"We certainly have to improve our profitability in the storage business as we move forward," Hurd said, adding that the launch of nine new products and service packages should put the company on a path to achieve those objectives.

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