Hewlett-Packard CEO Meg Whitman has again affirmed the company's commitment to its embattled Autonomy software division, saying that HP's fiscal health is stronger than some may believe.
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?
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.
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.
Amid HP layoffs totaling 27,000 employees, there’s troubling news in Hewlett-Packard’s Autonomy software business. Indeed, “Autonomy saw a significant decline in license revenue” during Q2, prompting HP Chief Strategy Officer Bill Veghte (pictured) to take over that software business. Autonomy founder Mike Lynch will exit the company after a transition period.
Hewlett-Packard‘s (NYSE: HPQ) investigation into Autonomy accounting includes a $6.4 million deal with Tikit Group PLC, a British supplier of of accounting software, according to The Wall Street Journal. Autonomy recognized the total 2010 deal as up-front revenue but Tikit paid Autonomy only as it incrementally sold the software to customers, the Journal reported.
Hewlett-Packard (HPQ) reportedly has succeeded in striking a settlement to head off multiple shareholder lawsuits over the company’s ill-fated $11.1 billion purchase of management software provider Autonomy in 2011.