- Texas man arrested for powder-letter hoax
- Islamic State opens ‘marriage bureau’ for single jihadists
- Drone almost blocks California firefighting planes
- Tornado rips off roofs, downs trees near Boston
- GOP: Environmental rules keeping agents from accessing border
- John Kerry: Millions displaced by religious fighting in 2013
- Federal appeals court rules against Virginia’s gay marriage ban
- White House says Russia ‘losing’ war in Ukraine
- Hamas turns to North Korea for weapons deal, Iran for money
- Syrian casualties surge as jihadis consolidate
HP says fraud prompted $5B overpayment for co.
Question of the Day
Whitman answered that the two executives that should have been held responsible _ Apotheker and strategy chief Shane Robinson _ are gone. But the deal was also approved, essentially, by the current board.
“Most of the board was here and voted for this deal, and we feel terribly about that,” Whitman said. “What I will say is that the board relied on audited financials. Audited by Deloitte _ not `Brand X’ accounting firm, but Deloitte. During our very extensive due diligence process, we hired KPMG to audit Deloitte. And neither of them saw what we now see after someone came forward to point us in the right direction.”
Apotheker told The Associated Press on Tuesday that he was “stunned and disappointed” to learn of the allegations against Autonomy, and pointed out that they had gone undiscovered by HP’s auditors, executives and directors.
Deloitte UK said it could not comment on the matter because of client confidentiality rules.
HP shares traded down $1.74, or 13 percent, at $11.56 in morning trading. Just after the open, they hit $11.35, the lowest level since 2002.
HP’s net loss for the fiscal fourth quarter, which ended Oct. 31, amounted to $6.85 billion, or $3.49 per share. That compares with net income of $239 million, or 12 cents per share, in the same period last year.
It was the second mammoth loss in a row for HP. In the third fiscal quarter, it lost a record $8.86 billion, or $4.49 per share. That was due to a charge for another acquisition _ that of Electronic Data Systems, a technology consulting service that it bought for $13 billion in 2009. In that case, HP didn’t blame improper accounting, just results that didn’t live up to expectations.
Excluding the charges in the latest quarter, HP earned $1.16 per share in the latest quarter, just above the average analyst forecast of $1.14 per share, as polled by FactSet.
HP’s revenue was $30.0 billion, down 7 percent from last year. That was below analyst expectations at $30.5 billion.
The Palo Alto, Calif., company stuck to its previously given earnings forecast for the fiscal year that just started, but it issued a forecast for this quarter that was well below analyst expectations. It expects earnings, excluding items, to be 68 cents to 71 cents per share, while analysts were looking for 85 cents, according to FactSet.
TWT Video Picks
By David Keene
Allowing states to innovate could reduce dependency on bureaucracy
- D.C. seeks to stay judge's order allowing gun owners to carry in public
- Hillary Clinton: Forget Obama, George W. Bush made her 'proud to be an American'
- Iraqi Christians rally at White House: 'Obama, Obama, where are you?'
- Illegal immigrants demand representation in White House meetings
- White House defends Kerry failure to broker Middle East cease-fire
- Tennessee Gov. Haslam slams White House for secret dump of illegals in his state
- Border surge puts Obama legacy on immigration at stake
- Federal appeals court rules against Virginia's gay marriage ban
- Federal judge rules D.C. ban on handguns in public is unconstitutional
- White House says Russia 'losing' war in Ukraine
Obama's biggest White House 'fails'
Celebrities turned politicians
Athletes turned actors
20 gadgets that changed the world
Fighting in Iraq