Marketplace has a new podcast for kids, "Million Bazillion!" EPISODE OUT NOW

HP blames quarterly loss on Autonomy fraud

Jeff Horwich Nov 20, 2012
HTML EMBED:
COPY

HP blames quarterly loss on Autonomy fraud

Jeff Horwich Nov 20, 2012
HTML EMBED:
COPY

Hewlett Packard says fraud is behind the big quarterly loss it unveiled this morning. The personal computing company is writing down $9 billion because of what it calls financial “misrepresentations” by Autonomy,  a company it acquired last year.

The company claims that they have evidence of fraudulent misconduct, according to Neil MacDonald, who follows HP as an analyst with Gartner.

HP is also saying that it overpaid for Autonomy because of these misrepresentations, and that it has turned over documents  that supports these claims to the SEC for further investigation.

The tech giant had hoped to get back on course when it chose Meg Whitman to be its CEO. 

“You have to look past the headlines and look into the financials,” says MacDonald. “There are areas of bright spots that have been overlooked by the headlines. Yeah over year, revenue is up 14 percent.”

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.