Hewlett-packard company said on Tuesday, the dollar's 500 million plus the victims of fraud, claiming that a British company, it bought last year misreport their financial.
Hewlett-packard CEO Meg Whitman (Meg Whitman) said that in the Autonomy of company executives PLC "intentionally" through the various accounting skills, persuade HP company in October 2011 pay $9.7 billion to improve the company's digital.
Autonomy company's former CEO said that HP's allegations are false.
HP is for a fee of $8.8 billion is responsible for alignment of autonomy of the accounting value, its real value. More than 50 billion us dollars, written down false accounting, hewlett-packard said.
HP, are trying to reinvent themselves PC and printing machine sales atrophy enlightenment is another blow. In the morning trading, the price of the stock hit a 10-year low of.
Among other things, independent of the search engine to help enterprise find the whole computer network important information storage. Acquisition is HP trying to strengthen its investment combination of high value-added products and services, for the enterprise and the government agencies part. Approval of the agreement is Whitman's predecessor, LiYiKe closed for three weeks, but Whitman's chief executive office. Whitman is hewlett-packard company's board members when LiYiKe launched autonomy when buying.
Which used in autonomous skills, Whitman said, the company has been booked sales of computer software claimed that as a marketing expenses cost, make the income of the machine. From the long-term contract revenues are fully booked, but not with the passage of time.
Therefore, autonomy than it seems to be more profitable, seems to be the core of it in the software business growth faster than the actual situation. These measures is obviously to training company acquisitions, Whitman said.
Once hewlett-packard the acquisition of the company, independent performance report fell rapidly. Independent CEO mike lynch continue to run a company, part of the HP, but Whitman forced him to leave, because it does not meet expectations May 23.
"Unexpectedly, I know, have more than meet eyes," Whitman said.
Lynch and walk, senior autonomous executive voluntary accounting fraud of information, make internal investigation, she said.
She said, this case has been passed to the United States securities and exchange commission and the British serious fraud office. The company will also try to cash payment independent through litigation in part.
British "financial times" in a statement, lynch said: "former autonomous management team shocked, today to see this sentence, and flatly rejected the charges, it is false."
"We spent ten years to build the autonomy of the industry leading technology and it is sad to see how it was poor management, because it is the HP acquisition," he added.
In a telephone conference with Whitman earnings reports, Barclays Capital (Barclays Capital) analyst Ben LeiZeSi ask, who is responsible for internal catastrophic acquisition.
Whitman answered and said, the two executives should be responsible for - LiYiKe and chief strategy officer shane Robinson - have gone. But the deal is approved, essentially, the current main board.
"The board of directors and vote for the deal, we feel very," Whitman said. "I'd like to say that the board of directors according to the audit the financial audit, deloitte - not 'brand X' accounting firm, but deloitte in very wide range of due diligence process, we hired KPMG audit deloitte. They all didn't see what we see now, someone to points out to us the right direction."
LiYiKe told the Associated Press on Tuesday, make he felt "shocked and disappointed," on the autonomic learning charges, and pointed out that they had already gone undetected hewlett-packard company's auditor, administrative personnel and the directors.
Deloitte Britain says can't comment on it, because for client confidentiality rules.
Whitman says, she still think autonomy as economic growth engine "HP software", although more than once thought a weak one.
Early disc trading, hewlett-packard shares fell $1.74, or 13%, in trade $11.56. Open, they reached $11.35, its lowest level since 2002.
HP, as of October 31, in the fourth quarter of the year the total net loss of $685 million, or $3.49 per share. Compare with this photograph, net income for 239 million dollars, or 1 2 cents per share, the same period last year.
This is the second time in HP line the huge loss. In the third fiscal quarter, it lost a record $886 million, or $4.49 per share. This is because another acquisition costs - namely electronic data systems company, technical advisory services, for $1.3 billion, 2009 to buy. In this case, the HP did not blame improper accounting, the results did not live up to the expectations of the people.
Is not included in the cost of the new quarter, HP won in the latest quarter of $1.16 per share, slightly above the average analyst expectations of $1.14 per share, by FactSet investigation.
HP's revenues of $30.0 million us dollars, fell by 7% last year. This is dollars, $30.5 billion below analysts' forecasts.
Palo alto, California, the company insists on its previous make, the first of the fiscal year earnings forecasts, but far below analysts' expectations, and this is the quarter released a prediction. The company is expected to, regardless of the special project profit for 68 cents to 71 cents per share, and analysts' 85 cents, according to FactSet.
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