HP & Autonomy: Another Bubble, Another Bust

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Mr. Roques
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Re:
Mr. Roques   11/29/2012 5:39:00 PM
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HP was desparate and probably felt they needed to do something. Bad move.

When speaking about bad numbers, what about Facebook? ... :-/

The Source
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The Source   11/29/2012 6:35:34 AM
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mfbertozzi,

It's quite obvious that HP's problems are much deeper than the problems surrounding the Autonomy acquisition.  Moody's has cut HP's credit rating, and says the company faces "competitive pressures, and execution challenges."  You can read more here:

http://articles.marketwatch.com/2012-11-28/markets/35404863_1_negative-outlook-long-term-credit-ratings-credit-profile  

 

 

The Source
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Re:
The Source   11/29/2012 6:25:50 AM
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Prabhakar_deosthali,

This will interest you.  The lawsuits begin.

http://www.reuters.com/article/2012/11/29/hp-autonomy-auditors-idUSL1E8MS8ZX20121129







The Source
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Re:
The Source   11/29/2012 6:15:08 AM
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Dear Anna,

I see that you have your doubts about the results of the investigation, and I suspect that others feel the same way.  As you may know, the US Securities and Exchange Commission's Enforcement Division and the UK's Serious Fraud Office for civil and criminal investigation are now investigating this case. It would be a very troubling situation indeed if HP and everyone else concerned doesn't get the answers they deserve. We all need to know who is responsible for misrepresenting Autonomy's financial results? Also, if the allegations by HP are true, how was the financial impairment calculated by HP? It would be a truly sad situation if after the investigation we are no closer to the truth. I don't believe this will be the case. 

Thanks for your comments.

Nicole 


mfbertozzi
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Re:
mfbertozzi   11/28/2012 3:09:04 AM
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@Nicole: thanks for the very interesting link; it is a very transparent message from Mike and the only question is about the timing; often, it happens resigned (or fired) CEOs published their perspective of the story, its relationship with public opinion, the market and some flash on company's future. I am wondering the reason for waiting this wise vision and message once they have left the company, but maybe there are confidential reason for avoiding more info.

prabhakar_deosthali
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prabhakar_deosthali   11/28/2012 1:29:12 AM
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Nicole,

Thanks for the link.

From the letter written by Autonomy CEO, it looks like HP has bungled things somewhere else and booking the losses against Autonomy ,to cover up things.

It will be interesting to know HP's reply to this letter

Anna young
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Re:
Anna young   11/27/2012 9:17:24 PM
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Nicole, We'll need forensic accountants and all kinds of experts to help us determine who's telling the truth between HP's executives, the former executives at Autonomy and the accounting company that inspected the books. At the end, I bet we still won't be any closer to the truth and none of this will recover the "goodwill" charge HP took and help the company repair its damaged reputation.

_hm
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Re: Alchemy to software bubble?
_hm   11/27/2012 6:49:21 PM
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@Nicole: I agree. To me, many of board members may not have much in common with technology or they may not have much vision. They are of follower type, and not leader type. It is unfortunate, but they should also be very open and listen to all employee about their view. This might have helped them.

The Source
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The Source   11/27/2012 6:28:27 PM
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Prabhakar_deosthali,

Former Autonomy CEO, Mike Lynch, has fired off a letter to HP's Board of Directors. Here's a link to the letter.

http://www.scribd.com/doc/114627598/Mike-Lynch-Open-Letter-to-HP

I know this will interest you.

Nicole 


The Source
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Re: This is All Because
The Source   11/27/2012 9:50:09 AM
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TaimoorZ,

You've noted that the acquisition of Autonomy may prove to be a smart move, and I will say that HP needed a strong data analytics strategy to move forward.  Companies are grappling with managing petabytes of data.  Autonomy's software does a good job of analyzing unstructured data and finding insights from that data that can help companies make better business decisions. Autonomy's IDOL technology will help HP better serve its current customers as well as provide data analytics services to new clients.

We will see in the long run whether this move pays off, but the acquisition does put HP in a better position to help companies tackle complex information management problems as corporate data grows exponentially. Still, just the thought of Autonomy misrepresenting financial results at the time of purchase and the subsequent $8.8 billion write down at HP opens up the possibility that customers may now question the value of Autonomy's tools.  This comes at a time when IBM, Oracle and other companies are charging ahead with their big data strategy.

Thanks for your comments.

Nicole


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