HP takes $8.8 billion writedown due to accounting improprieties

Posted on Tuesday, Nov 20 2012 @ 17:14 CET by Thomas De Maesschalck
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DailyTech reports HP is still suffering from the decisions made by previous CEO Léo Apotheker. The latest hit is a $8.8 billion write-down due to "accounting improprieties" related to the aqcuisition of Autonomy.
In its earnings guidance HP announced that it expects to take a massive $8.8B USD write-down due to "accounting improprieties". The guidance reads:

The charge relates to serious accounting improprieties, disclosure failures and outright misrepresentations at Autonomy that occurred prior to HP's acquisition of Autonomy and the trading value of HP stock during the period preceding the recording of the charge. In the third quarter of fiscal 2012, HP recorded an impairment charge for the goodwill associated with its Services segment following an impairment review driven by, among other things, the trading value of HP stock during the period preceding the recording of the charge, market conditions and business trends within that segment.

Analysts had been expecting around $0.87 USD/share earnings. With the massive write-down, EPS are expected to dip to between $0.68 and $0.71 USD/share.
HP's shares fell 10 percent before the opening bell.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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