Hewlett-Packard remains committed to Autonomy, CEO Meg Whitman said last week on a HP roadshow to promote the vendor's new Project Moonshot servers in the United Kingdom.
The accounting feud between Hewlett-Packard (NYSE: HPQ) and former Autonomy executives threatens to undermine HP Autonomy’s future business and channel partner engagements. So how can HP march forward with Autonomy, even as the hardware giant explores potential legal action against former Autonomy executives?
Autonomy, the software business Hewlett-Packard (NYSE: HPQ) acquired last year, “still requires a great deal of attention, and we’ve been aggressively working on that business,” according to CEO Meg Whitman. Those statements, delivered during an HP Q3 2012 earnings call this evening, show that HP’s most prized software portfolio still isn’t firing on all cylinders.
Autonomy founder and former CEO Mike Lynch has pushed back hard against Hewlett-Packard’s (NYSE: HPQ) claim that Autonomy used misleading accounting to boost its valuation, according to a published report.
Lynch’s point is that $200 million worth of revenue fudges, even if it did occur, could not have triggered a $5 billion slide in Autonomy’s value.
Hewlett-Packard (HPQ) and Chief Executive Meg Whitman have been ordered by a California judge to defend a $1 billion class action lawsuit filed last May in a San Francisco district court by a group of investors over the bungled $11.2 billion Autonomy acquisition.
HP’s Autonomy business has begun to stabilize and is showing some improvement but the real winner seems to be Vertica, the company’s Big Data software platform. Hewlett-Packard (NYSE: HPQ) CEO Meg Whitman and CFO Cathie Lesjak offered that assessment today after the company announced better-than-expected Q1 2013 results.
Hewlett-Packard's purchase of Autonomy is under investigation by the U.K. Serious Fraud Office, the company said in a regulatory filing ahead of its annual meeting where there are expected to be challenges to the re-election of Chairman Ray Lane and two board members.