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H.P. Claim Highlights a Gray Area in Software Sales

New York Times Original article ›

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Behind H-P's allegation of "serious accounting improprieties" is the misclassifcation of hardware sales as software sales. Hardware sales of 10-15% were unprofitable at Autonomy and helped to inflate margins from 30% to over 40% before the acquisition by H-P. H-P's Apotheker let his views of Autonomy as a growth engine and bonding with Autonomy founder Mike Lynch affect the process of due diligence, which is obvious now was not thorough in all aspects.

An Inside Look at Autonomy Inc.- the acquisition that cost HP a $8.8 billion charge in 2012

08/19/2011

What started out as an opportunity for H-P to enter the voluminous data analysis field and compete with the likes of IBM ends up quickly in a huge and disastrous loss.

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Hewlett's Loss: A Folly Unfolds By the Numbers

New York Times 11/20/2012

H.P. Claim Highlights a Gray Area in Software Sales

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HP under CEO Apotheker

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Grouped Articles

New H-P CEO Reprograms Strategy

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Nokia and H.P. Play Catch-Up

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Chief Reboots H-P After Scandal

Wall Street Journal 02/18/2011

Hewlett-Packard Hopes to End the Soap Opera

BusinessWeek 01/27/2011

H-P's Apotheker Must Formulate Hurd Antidote

Wall Street Journal 02/24/2011

H-P Under Fire for CEO's Role in Remaking Board

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