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H-P Secures London Deluxe Contract

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Hewlett-Packard Company (HPQ) 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 distribution process.

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 distribution requirements.

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 estimates.

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, SanDisk Corp. (SNDK) carrying a Zacks Rank #1 (Strong Buy) and Hutchinson Technology Inc. (HTCH) and Western Digital Corp. (WDC), both carrying a Zacks Rank #2 (Buy).

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