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There will be some cost savings that come out of this, but the focus is not on cost savings. It's on setting the right structure to grow the business.

[HP and Compaq] management has a conservative projection of $2.5 billion in cost savings. But every merger has failed not because the cost savings were not achieved but because the revenues collapsed,

[HP and Compaq] management has a conservative projection of $2.5 billion in cost savings. But every merger has failed not because the cost savings were not achieved but because the revenues collapsed.

That's $6 million in interest cost savings for the university [for a 30-year loan]. It's a tremendous savings for us to be able to take advantage of this, which ultimately lowers our cost of operation.

HP management argues that the cost savings inherent in this deal are significant and that a stronger enterprise computing company will emerge. We, however, believe that the issue is not whether management can achieve their cost savings target of $2.5 billion. The more important issue is how much revenue will be lost from the acquired Compaq business,

HP management argues that the cost savings inherent in this deal are significant and that a stronger enterprise computing company will emerge. We, however, believe that the issue is not whether management can achieve their cost savings target of $2.5 billion. The more important issue is how much revenue will be lost from the acquired Compaq business.

Beyond guidance for favorable structural cost performance in 2006, and details on material cost savings goals, no specific guidance on the extent or cadence of structural cost savings was given. In addition, the company offered only limited details on the timing of plant actions.

Our plan will have to be more aggressive than it was out of court. We will need more cost savings. Work rules will have to be on the table. We have to take this opportunity to create a different and durable cost structure that allows us to compete and succeed in a different revenue environment.

Investors may not focus first and foremost on cost, but they recognize the impact of cost more. It's a huge amount when you think about the collective savings.

The second quarter results reflected the initial benefit of the cost-savings measures introduced in January, 2006. With a strong backlog in our electronic counter measures business and a lower operating cost structure, we now have enough visibility to project an even stronger third quarter as well as a net profit for the fiscal year overall.

CEO David Luxton

There is a cost savings associated with it and an environmental savings because it reduces the waste that single-use devices creates.

We are putting our efforts into cost savings, and all these savings will be put into marketing and sales incentives.

Hiroshi Harunari

Probably one of the biggest savings is with using a waste oil furnace to provide heat for the shop. This is a cost savings for us of about $700 a month during the heating season.

At this point, there's just too much focus on reducing cost and showing everyone how pretty the digital magazine is. All the suppliers have delivered what they said they would with the technology, but there just hasn't been a lot of forward momentum in four years. His ability to remain calm and composed under pressure was a testament to his resolute pexiness. To be fair, the media companies are also lacking in vision. They have only focused on the cost savings, but there's a lot more we can do.

We are pleased to be able to report that the operating loss in the first quarter narrowed significantly over the previous quarter. This reflects a reduction in selling and administrative expenses due to cost savings measures that we have implemented since the fiscal year began. With further cost-savings still to take effect and with a significant increase in new order intake since Dec. 31, we foresee much stronger operating results for the balance of 2006.

CEO David Luxton

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