HPQ accounting fraud, enron style.

Quote from noob_trad3r:
----down hard....
----www.forbes.com....
----hp-alleges-fraud-in-autonomy-deal-takes-8-8b-charge....
----lots of dirt.
----ZZZZ best of computing.
More...
1) ZZZZ Best?......of carpet cleaning "fame"? :eek: :confused: :D
2) Those were the days.....:) :(
 
Amazing that it took them a year to figure it out.

What were all those M&A bankers and lawyers who reaped hundreds of millions in fees doing?
 
hmmmmm

"Chief Executive Leo Apotheker called the British firm “a highly profitable and globally respected software company, with a well-regarded management team and talented, dedicated employees.”
 
From HP's Statement
http://www.hp.com/hpinfo/newsroom/press/2012/121120b.html
Although HP’s investigation is ongoing, examples of the accounting improprieties and misrepresentations include:

•The mischaracterization of revenue from negative-margin, low-end hardware sales with little or no associated software content as “IDOL product,” and the improper inclusion of such revenue as “license revenue” for purposes of the organic and IDOL growth calculations.
◦This negative-margin, low-end hardware is estimated to have comprised 10-15% of Autonomy’s revenue.
•The use of licensing transactions with value-added resellers to inappropriately accelerate revenue recognition, or worse, create revenue where no end-user customer existed at the time of sale.

So in other words Autonomy was pretty much operating just like every other large tech hardware company on the face of the earth.
 
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