HP cited accounting issues that happened prior to its acquisition of Autonomy in 2011. CEO Meg Whitman said there were "serious accounting improprieties, disclosure failures and outright misrepresentations at Autonomy Corporation PLC." Whitman said the case has been referred to the U.S. Securities and Exchange Commission and the U.K.'s Serious Fraud Office.
HP said most of the charge in its latest quarter was tied to the fictitious accounting at Autonomy.
HP reported net revenue that fell 6.7% to $29.96 billion in the fiscal fourth quarter ended Oct. Analysts had been expecting $30.43 billion.Excluding charges, HP earned $1.16 a share for the quarter, slightly beating analysts' expectations of $1.14 a share. For the next quarter, the company expects earnings to be 68 cents to 71 cents a share, excluding items, below analysts' expectations of 85 cents. HP did affirm its previously given earnings forecast for the fiscal year.
Hostess is trending as the Twinkie maker's liquidation plans have been put on hold. Now that a federal bankruptcy judge delayed the company's plans to liquidate and sell off assets, Hostess will go into mediation Tuesday with the Bakery, Confectionery, Tobacco Workers and Grain Millers Union. Hostess management and the bakers' union will attempt to resolve the strike that Hostess said forced the company to shut down operations. U.S. Bankruptcy Judge Robert Drain said Monday at a hearing in New York that to not have gone through mediation would leave "a huge question mark over this case." Drain attributed his decision to not approve Hostess' liquidation to the potential loss of over 18,000 jobs. The bakers' union went on strike over pay cuts and reductions in benefits. Hostess said it would close down on Nov. 16, because the union's strike gave the company no other choice as it did not have enough workers to resume operations.
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