Follow by Email

Wednesday, November 21, 2012

Autonomy’s Fraudulent Attacks Left HP in Shambles

Every one of us is aware of the sentiments with which Hewlett Packard is perceived when it comes to Technology Breakthroughs and software discoveries. And recognized as one of the leading technology inventors in this mammoth-sized IT industry, this leader got suppressed under its own weight of complacence. The story of HP’s being the victim of a scam by a British company that it bought last year who lied about the finances.  
Acquisition of Autonomy’s, a company engaged in the development of search engines to facilitate imperative information saved across various computer networks proved as debacle. The futile attempt to acquire the company was to reinforce its presence  and high-quality product and services assortment particularly for government bodies and corporations.  The deal was signed  Leo Apotheker, predecessor of Whiteman and was closed during three weeks of chief executive’s, Whiteman tenure.
 Under his allegations against Autonomy, Meg Whiteman stated that the company’s executive willfully beefed up company’s figures using accounting tricks which made HP go slippery over the deal – making them pay $9.7 billion in October, 2011. According  to the accounting experts charges are serious; while Autonomy’s former CEO said that all allegations posed are illegal and false.
To break-even the loss, HP is claiming a $8.8 billion charge for aligning Autonomy’s purchase price which HP says is actual value.  Charges of more than $5 billion are made through gimmicks and showing false accounts.
Whiteman also added to his statements that Autonomy’s trick box included representing computers sales booking as software revenue while declaring cost of machine making as Marketing expenses.  Revenues for future contracts had up front booking rather than overtime.
Sources say that Autonomy has gained more profits than it had gathered and seems like increasing its fraudulent software business at a jet-propelled speed. In contrast, HP has got a set back with a loss of $6.85 billion for the fiscal fourth quarter.
Seems the cat-fight has paved a way for Bull-fight with a large amount of loss bear by HP due to deceitful practices.  
 Stay Tuned for more!

No comments:

Post a Comment