HP execs were aware of Autonomy's loss-making hardware sales - FT

Tue Feb 18, 2014 2:40pm IST

A Hewlett-Packard logo is seen at the company's Executive Briefing Center in Palo Alto, California January 16, 2013. REUTERS/Stephen Lam/Files

A Hewlett-Packard logo is seen at the company's Executive Briefing Center in Palo Alto, California January 16, 2013.

Credit: Reuters/Stephen Lam/Files

Related Topics

Stocks

   

REUTERS - Hewlett-Packard Co's (HPQ.N) senior executives were aware of certain Autonomy Corp accounting practices months before a whistleblower flagged them, prompting HP to write down the value of Autonomy, the Financial Times reported, citing email records.

Palo Alto, California-based HP has said it was a victim for having paid $11.1 billion to buy Autonomy in 2011. It took a writedown of $8.8 billion in November 2012, accusing Autonomy officials of accounting fraud.

Autonomy's practice of selling hardware to clients at a loss had been documented by auditors and a report was provided to HP after it bought the British software maker, the FT said.

HP executives were included in communications about Autonomy's hardware sales before the whistleblower brought the transactions to light, the FT said, citing several emails. (link.reuters.com/hev86v)

In an October 2011 email that HP Chief Executive Meg Whitman was copied on, Autonomy cited difficulties it was having in selling HP hardware, the newspaper reported.

However, HP said that while it eventually learned about the hardware sales, it knew nothing of the alleged accounting improprieties until the whistleblower came forward, the FT said.

Autonomy's former Chief Executive Mike Lynch said in a statement that the emails and documents cited by the FT showed Autonomy had been open with its auditors, Deloitte.

Deloitte told the newspaper it "categorically denies any knowledge of any accounting improprieties or misrepresentations in Autonomy's financial statements".

Lynch said: "Meg Whitman accused Autonomy of 'active concealment' but these revelations prove we were open and transparent with our auditors who continue to stand by the accounts."

HP could not be immediately reached for comment by Reuters outside of regular business hours.

(Reporting by Varun Aggarwal in Bangalore and Paul Sandle in London; Editing by Supriya Kurane and Mark Potter)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Rising Star

Reuters Showcase

Cybercrime

Cybercrime

Hacker sentenced to 21 months in U.S. prison for $15 mln scheme.  Full Article 

Printed Instruments

Printed Instruments

3D printed instruments make sweet music in Sweden.  Video 

Tweet Debut

Tweet Debut

Britain's Queen Elizabeth sends her first tweet.  Full Article 

Artificial Intelligence

Artificial Intelligence

Google bolsters artificial intelligence efforts, partners with Oxford.  Full Article 

Fighting For Workers

Fighting For Workers

Ralph Nader urges Apple to reduce buybacks, improve wages - WSJ.  Full Article 

Future Uncertainty

Future Uncertainty

Ericsson flags North America slowdown.  Full Article 

Microsoft Earnings

Microsoft Earnings

Microsoft sales beat Street hopes, cloud profits up.  Full Article 

Looking To Sell

Looking To Sell

HP seeking buyers for corporate-networking business in China - WSJ.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage