Just what HP (HPQ) needs: Another public relations headache! Business Insider reports that some HP tech support employees are suing the company for allegedly having them work more than 40 hours a week and then failing to deliver overtime pay. Plaintiff Eric Benedict, an HP employee, is alleging that the company intentionally “misclassified” workers “so that they wouldn’t qualify for extra pay.” An HP spokesperson told Business Insider that the company is “reviewing the complaint” but has no specific comment on it at this time.
To understand what an unholy mess HP (HPQ) is in right now, consider that CEO Meg Whitman says she needs more time to fix the company than she would have had to fix the entire California economy if she’d been elected governor. In a long Businessweek article about HP’s current turmoil, Whitman says that it will take her five years to execute her full plan to turn the company around. Whitman acknowledges that “some people don’t like that answer” when they ask her how long it will take, but she says it’s simply a reality at this point. More →
Unless a meteor strikes its corporate headquarters, things can only get better for HP (HPQ) in 2013. Bloomberg reports that HP is starting off the new year by taking a fresh look at which company divisions it needs for the future and which ones can be tossed over the side. In the company’s most recent 10-K filing with the Securities and Exchange Commission, it said that it was evaluating ” the potential disposition of assets and businesses that may no longer help us meet our objectives,” which is a strong hint that it wants to unload some underperforming segments. The one problem for HP, however, is that many of its assets could be toxic, especially in light of the company’s recent multibillion-dollar write downs related to its acquisitions of companies Electronic Data Systems and Autonomy. HP acknowledged this reality in its SEC filing by noting that it “may encounter difficulty in finding buyers or alternative exit strategies on acceptable terms in a timely manner.”
Windows 8 tablets that were set to be equipped with a new, energy-efficient chip from Intel (INTC) are reportedly being delayed until early 2013, according to Information Week. PC makers are said to be having trouble building drivers for the company’s dual-core Clover Trial Atom Z2760 processor, which was expected to help manufacturers compete with the iPad and several top-notch Android tablets in terms of performance and battery life. More →
IDC published a new report on connected devices this week. It was largely devoid of surprises, but one very strange aspect of IDC’s forecasting immediately popped out: Once again, IDC is projecting PC and laptop growth that is cheerfully out of sync with everything we know is happening in the computer industry. More →
Post-PC era, here we come. IDC is projecting that tablet and smartphone sales this holiday season will “grow 55.8% and 39.5% year-over-year respectfully, while PCs are expected to decline slightly from this quarter a year ago.” The big winners in this scenario aren’t hard to figure out: IDC says that Apple (AAPL) and Samsung (005930) are poised to stay “at the top of the smart connected device space” while traditional PC manufacturers such as HP (HPQ) will continue to languish. More →
Dating someone out of frustration and desperation is never a good idea, and it’s apparently not a good idea when it comes to corporate mergers either. Reuters recently posted a mammoth report detailing HP’s (HPQ) disastrous acquisition of IT software firm Autonomy, and it doesn’t make former CEO Léo Apotheker look very good. Essentially, unnamed sources told Reuters that Apotheker was so desperate to transform HP from a hardware manufacturer into a software firm that he overlooked several warning signs when he agreed to buy Autonomy for $11.1 billion back in 2011. More →
HP (HPQ), which until last week was just a boring underperforming tech company, has become a lot more interesting lately. Ever since HP accused IT software firm Autonomy of committing fraud prior to its acquisition in 2011, Autonomy founder Mike Lynch has been hopping mad and has accused HP of smearing his company’s good name to make up for its own incompetence. Now HP has shot back today, claiming that it has “uncovered extensive evidence of a willful effort on behalf of certain former Autonomy employees to inflate the underlying financial metrics of the company in order to mislead investors and potential buyers.” More →
And here come the lawsuits. Bloomberg reports that HP (HPQ) investors have unsurprisingly decided to sue the company over the $8.8 billion write off related to its 2011 acquisition of enterprise IT firm Autonomy. The complaint against HP “was filed today in federal court in San Francisco by the law firm Robbins Geller Rudman & Dowd LLP,” Bloomberg writes. HP last week surprised the tech world when it alleged that Autonomy had committed accounting fraud before its acquisition by HP and said it would seek to press criminal charges. Former Autonomy founder Mike Lynch quickly shot back at HP and said that the company was unjustly smearing his firm to cover up for its own incompetence.
Autonomy founder Mike Lynch is still hopping mad at HP’s (HPQ) accusations that his former company committed accounting fraud. In a new interview with Business Insider, Lynch accuses HP of conducting a “complete ambush” and says that he will not be the “scapegoat” for the company’s purported poor business decisions. Lynch also said that the $8.8 billion write off HP reported for its Autonomy acquisition was a smokescreen for deeper problems at the company and said that “they tried to blame it on the accounting but obviously something else is going on.” Lynch told the Wall Street Journal earlier this week that he found it suspicious that HP would level accusations against his former company at the same time it released “the worst set of results in their 70 year company history.”
Congratulations, HP (HPQ) — this is the most interesting you’ve been in years! The New York Times reports that Deloitte, the firm whose work auditing software company Autonomy was cited by HP CEO Meg Whitman on Tuesday to justify fraud allegations, is denying that it ever found any scrap of evidence to indicate Autonomy had cooked its books. The company specifically said that it conducted its “audit work in full compliance with regulation and professional standards” and “categorically denies that it had any knowledge of any accounting improprieties or misrepresentations in Autonomy’s financial statements.” Whitman on Tuesday said that she didn’t blame Deloitte for not reporting Autonomy’s alleged fraud because it was hard to detect and HP only discovered it “after someone came forward to point us in the right direction.”
Autonomy founder Mike Lynch isn’t taking accusations that his former company swindled HP (HPQ) lying down. In an interview with the Wall Street Journal, Lynch says he was completely blindsided by HP’s announcement this morning that it would seek criminal charges against his former company for alleged “serious accounting improprieties, disclosure failures and outright misrepresentations.” Not only does Lynch flatly deny all of HP’s charges, but he says that the company is lying about Autonomy to cover up its own financial mismanagement after it bought Autonomy back in 2011. More →
HP (HPQ) is still being haunted by the stench of former CEO Léo Apotheker. The Wall Street Journal reports that Apotheker, “who orchestrated” HP’s purchase of enterprise IT firm Autonomy, is “both stunned and disappointed” to hear that the company committed alleged accounting fraud that forced HP to write off $8.8 billion. But despite this, Apotheker defended his tenure at HP and said that he did his due diligence in checking out Autonomy’s accounting. Former Autonomy CEO Mike Lynch, for his part, has denied any wrongdoing. More →