i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. matt: hewlett-packard takes a hit. what to expect when the business splits later this year. ♪ matt: i'm matt miller in for emily chang, and this is "bloomberg west." salesforce boost its profit forecast, and elon musk's hyperloop taking two steps closer to becoming a reality. we take you to the world's first solar powered airport. all of that and more on "bloomberg west." first, to the lead. hp shares are sliding as they

issued a profit forecast missing estimates. the company is being hit hard by a slump in pc business and its revenue in personal systems dropping 13% year-over-year. total revenue declined 8% from this quarter last year. --t are we learning about hb hp as they prepare to split into two? cory johnson is here with me and we also have idc chief research officer on us with skype. what do you think about hp 's results? disappointing, but is there a silver lining? these results were mixed. if you start digging and you do digging, you see some areas where company clearly has issues. they saw a real cause , particularly on consumer, down 22%. we expected that in terms of people waiting for windows 10.

however, if you dig into the enterprise group, there they saw significant improvement, if you will, in storage and steady demand, or improved, for industry-standard servers being up 8%. what jumped out at me is that enterprise services has been a drag for a long time. a lot of people have been cut out of the organizations and have come from services. to see margins up, that says there is light of the end of the tunnel and there are starting to improve in that area. obviously, the other area they are getting crushed is in printers. the effect of strong dollar and a weak yen has made their japanese competitors very competitive. meeting they have to drop -- meaning they have to drop prices and be really aggressive. matt: the strong dollar must be tough. they have to buy most of their components in asia. and then go across a

competitive market where you have competitors willing to sell at single-digit margins. it's just getting harder and harder. we've known that for a while , which is why they want to put that off to the side. the rest of the business, as crawford points out, it's not the worst they've ever been, but worse than all of the major competitors out there. cisco in particular. this is a company that spent vast fortunes and acquisitions in recent years, over $10 billion in software acquisitions. software is doing worse. a lot of the investments they made are not only paying off but things are getting worse. they are spending billions to do this. again, the big take away is revenue growth. as the company continues to get smaller across all business units, not just the ones they want to pawn off, it's doing so much worse. pcs down 13% year-over-year. match: as you point out, that is

the bad bank. theoretically. matt: who is the good bank competitors? who will compete against them in technology and services? cory: ibm. there are likely going to have some sort of cloud service offering. cisco made some sort of nod in that general direction, having some software and hardware stuff. word, andouple that maybe crawford can help. one of the biggest developments in computing is a company like facebook, apple, google, amazon web services -- they make their own. they go out and buy their chips and specialty disk drives. they are buying the circuit boards. they are not buying up data centers.

matt: to that point, hp has done some interesting stuff. they partnered with foxconn to develop a set of servers they can move out a lower margin and into some of the service providers, and they have had some success with that. you are also seeing places like microsoft -- absolute customers on the data center side for hewlett-packard. they are making progress in that area. but to that point, a lot of these guys roll their own. hp was able to grow that business in a world where supposedly everyone is going to the cloud. that says people are building out private clouds as well and hp is holding their own or able to grow the business in a segment of this growing data center space. again, it's across the whole board, but i'm actually pleased with that number. cory: roll your own, grow, space. matt: sounds like he's in california but he's in massachusetts. are they going to need to

compete against oracle and sap as well? cory: they do in small ways. the conference call will be interesting. how big will the restructuring be going forward? one-time restructuring charges for the last decade. and now there is more restructuring to come even after this split where they supposedly have the right businesses in place. at least one of them on the restructuring. those questions will come up. matt: crawford, is this the never-ending restructuring story? crawford: there is definitely probably more to come. i think it is probably also on the services side, but that is why i'm so focused on the services margin. that is an indicator that you will see a meaningful and to a -- a meaningful end to a lot of the restructuring going forward. to the first part of our

conversation, when these companies split, the whole story will be about growth. can they expand faster? matt: we should know that by these -- cory: we should know that by these results. matt: crawford del prete, and cory johnson, thinks. -- thanks. it's a pleasure to see you. the stock we are watching his twitter. speaking of a big loser, today's market selloff sending twitter shares below there are $26 ipo price. ir $26 ipo price. if you bought the shares and held them when you went on the market in november 2013, you are now dead even. jack dorsey warned it would take a wildly for the company would be able to recover from the slowdown in user growth. that was their last leg down. they've obviously had issues.

a story we are watching also, tesla and a b&b -- and airbnb teaming up to add tesla charging stations to properties along the west coast. they are starting with 30 stations at airbnb properties. tesla has donated and installed these stations and plans to add more. now a status update. republican presidential candidate donald trump took aim at the thousands of foreign engineers working at silicon valley. -- trump'srom's immigration plan would increase the amount paid for h-1b visas. a group representing mark zuckerberg and bill gates hitting back at his plan. the president of the group wrote in a blog post, "the idea we should radically restrict pathways for highly skilled immigrants to come and stay here is just wrong. the evidence is clear that high skilled americans create american jobs."

one reason this is a contentious issue is because the h-1b visa program is hugely popular among these tech u.s. companies. this year, 65,000 slots were filled within the first week . employers could apply for them. of course giant technology , companies love to employ people from overseas. coming up, the new product behind salesforce's better than expected forecast. plus, yelp gives taxpayers a place to write about how much they love the irs or tsa. stay with us on "bloomberg west." ♪ ♪

matt: hot story we are watching today, california regulators say they have evidence uber failed to screen out 25 drivers with serious criminal records. according to prosecutors, the companies background check failed to prevent them from hiring registered sex offenders, identity thieves, burglars, a kidnapper, and a convicted murderer. a district attorney in l.a. revised an existing lawsuit for failing to give assurances that their drivers are safe. its sales is raising

forecast for the third time this year. the ceo pushed to expand into new markets and it seems to be paying off. brent is with me, and cory johnson is still here. brent, the stock trended down, down, down all day. now it's getting a nice little bounce in the aftermarket trade. did no one expect this? brent: i think the market is obviously doing its own thing. i think investors continued to be pretty positive about the outlook for salesforce. we've said this multiple times inside the software stream. they are the most innovative company and they have the right pricing model. everyone in the industry, including larry ellison, is chasing salesforce. they are the business model everyone is trying to copy. they are the apple, if you will, of the software industry.

the quarter looked very good. the backlog was up 26%. they had good operating margin improvement. cash flow growth was up plus up 44% year-to-year. the service cloud leading the charge had the best growth at 40%. a lot of the metrics continue to exceed what the analysts expect, and we believe that the consistency of the results have kept investors in the stock. they've really continuously delivered on the numbers. matt: microsoft reportedly offered $55 billion for salesforce and now they are -- now microsoft is becoming a real competitive threat. you mentioned there are a lot of other companies trying to get into this cloud space. cory: we don't even know the

terms of the offer or the price of the offer. it could have been far below the market cap of the company. it could have been all stock. it could have been a merger not attract it to them. matt: reportedly $55 billion -- even if it was the whole company -- cory: was it cash? was it microsoft stock? do you want $55 billion in microsoft stock? matt: i would take it. the board looked at that and said we don't want that deal. whatever it is, that offers up -- offer is off the table right now. microsoft made an offer for yahoo! at $35 per share. matt: they should have taken that. cory: they should. all of the value of yahoo! is alibaba. microsoft is not going to come back to the table. i don't think we should imagine there will be another offer with the components of that deal that will come back. matt: there is so much talk

about -- you said larry ellison is after them, and i think you meant in a competitive way. but is oracle after them to purchase? is constantly talked about as an acquisition target. brent: sell force's business model is extensive. salesforce does not need anyone. they can do this on their own. they're growing 25% with enormous operating margin improvement. everyone thinks the margins are good. i think they can double. i don't think salesforce needs anyone. it's that everyone else needs sell force -- salesforce because they have the right model. who acquires salesforce, with the exception of microsoft, would be diluted. deluded.d --

as a momentum stock want to growing at 38%, now we are at revenue growth of 24% gap revenue growth. growth justings about the same. if it is slower than the growth of revenue,it's kind of like putting less gas and the -- less gas in the tank and trying to go further. this thing is getting stretched. they've done $1 billion in acquisitions at revenue growth is slowing. the massive growth story on this was a few years ago. it ain't anymore. matt: unfortunately, we don't have time. brent thill, managing director at ubs, thanks for joining us as well. if you have a beef with the irs or the tsa, you can go to yelp. it's a partnership between the consumer review site and the u.s. government to rate -- let taxpayers rate government services like the line at the

dmv or any because they are all horrible. it is an effort to tackle the government's customer service program. a march gallup poll found americans' biggest problem was dissatisfaction with government ranking were spent terrorism or unemployment. among the first to take advantage was former hp ceo carly fiorina, giving the tsa a one star rating. she wrote that the tsa has been your tax dollars on body scanners that have a 96% failure rate. later on, the scoop on the hyperloop. i will sit down with the ceo. ♪ matt: time now for the daily

byte. this is how many solar panels -- 46,150. this is how many solar panels are powering india's kochi airport, the first airport to run fully on solar power. it has a peak capacity of 12 megawatts and saves millions in carbon emissions. it's the same as planting 3 drivingtrees, or not 750 million miles in my truck. india already has four gigawatts of solar capacity. prime minister narendra modi wants to increase that by 100 gigawatts in 2022. status update -- hyperloop, the project to revolutionize the way we travel, has unveiled heavyweight partners as they prepare to build a test track for a capsule that might one day carry passengers at speeds of

760 miles per hour. they have pioneered -- partnered with a pioneer in vacuum , as welly, oerlikon as aecom, in exchange for equity. a team of 400 people are working on a test track in the central valley. has hyperloop is taken a big step closer to a reality? i'm speaking now with hyperloop ceo dirk ahlborn. dirk, thanks for joining us. i have to admit, until today, i was not clear whether hyperloop was an actual possibility or just a pipe dream. it seems like a lot of people are still skeptical it can ever happen. do you have all of the realistic components to genuinely make this work? dirk: of course. we finished our feasibility

study at the end of the year. right after basically we went ahead and look at the different -- and took a look at the different solutions to problems. we did the final decision to move forward and announced we would start to build in the central valley of california the first demonstration track. we are in the permitting process right now. construction is supposed to start the beginning of next year. matt: i think i read in "wired" that an executive said they have tackled far more difficult problems as far as the building issues are concerned. the only issues here are to some extent power usage and the cost. are those the biggest problems, getting cost under control? >> no. the exciting part about this project is actually that -- you can imagine the rail industry as a dinosaur.

there is no passenger railway right now that is profitable. they are all getting subsidies from governments all over the world. the hyperloop concept is actually able to be profitable within eight years. we are creating far more energy than we are using, and therefore operating cost is very low. you can imagine how large of a market it is. all the numbers we have been looking at in terms of construction and everything combined is looking good. it's not the amount of money, but how fast you can recover. it's a really exciting business opportunity. matt: from what i understand, you will have solar panels on the tubes, windmills set up along the route and that is why you're saying it will be energy positive, right? it goes 760 miles per hour, which is 2-3 times faster than

ice train. when will people be able to ride? dirk: we are starting construction the beginning of next year. we expect by 2018 to open to the public. matt: as far as the test track? do you have plans already 2 -- to -- >> it is not the test track but it's actually a local hyperloop. it will be five miles long. his full-scale moving more than 10 million people. it's a newly developed community with a large entertainment district. we will have several resorts and a theme park. there will be plenty of people able to ride the hyperloop. it is important for us to be able to optimize passenger boarding, capsule handling. it actually will be the first. matt: hopefully you are not going full speed because of it

-- because it will take you about 20 seconds to get to one and to the other. you have an interesting ownership structure. boeing, nasa, spacex all have engineers that work with you. i noticed you wanted to do an ipo maybe by the end of this quarter. is that still the plan? dirk: the companies that you just mentioned are not part of our company. we have people, our engineers working on the project, have backgrounds working for these companies, but they are not involved in the project. in terms of the public offering, the reason behind that is our structure is very unique. it's really important for us. they have the opportunity to be in very early on. we are looking at a lot of different possibilities and opportunities to make that happen. obviously, the public offering is unfortunately needed.

matt: got it. dirk, thanks. unfortunately, we have to wrap. ♪

♪ announcer: from our studios in new york city, this is "charlie rose." charlie: jeff flake is here, the junior republican senator from arizona. of thended the reopening u.s. embassy in havana. he has been an outspoken advocate for restoring ties between the two countries, but on saturday he announced his opposition to the president's iran nuclear accord. he joins us from phoenix. what in the end made what -- made the difference to you?