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.
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