Mike Lynch, former CEO of software company Autonomy Inc. finally retorts after a week of being accused to have “cooked the books”of his company before Hewlett-Packard Company (NYSE: HPQ) took over last year. The acquiring technology company had accused the Lynch’s team of having inflated pre acquisition revenues to make things look brighter before last year’s acquisition. The general counsel of Hewlett-Packard Company (NYSE: HPQ) on November 15th, 2012 had announced that revenue of $200 million was recorded improperly during the fiscal years 2009 and 2010. It said that Autonomy classified revenues from retail sales of hardware as software revenues and booked bogus sales.
Deloitte LLC, the firm which audited books of accounts of Autonomy for the fiscal year 2010 said did not find any irregularities in the financial statements. Meg Whitman CEO Hewlett-Packard had stated that his company had based its decision to acquire Autonomy on the basis of the financial statements audited by Deloitte.
The PC market leader Hewlett-Packard Company (NYSE: HPQ) had announced an accounting write down of $ 8.8 billion , a larger chunk ($5 billion) of this amount was on account of accounting or recording irregularities in Autonomy’s books before its acquisition according to Hewlett-Packard Company (NYSE: HPQ). These claims stirred a hot debate among accounting experts, audit professional and experts who are questioning the authenticity of the allegation’s made by Hewlett-Packard Company (NYSE: HPQ). Experts also agreed with what Lynch’s contention that a $200million of improper recording of revenues do not add up to an impairment charge of $9 billion
“After being ambushed by all this yesterday, I’ve had a chance to look at some of the things that they’re saying — it just doesn’t add up,” Lynch said yesterday in an interview. “HP is looking for scapegoats, and I’m afraid I’m not going to be one of those.” Said by Former Autonomy Corp. Chief Executive Officer Mike Lynch in an interview.
This is not the first time that Hewlett-Packard Company (NYSE: HPQ) is making such an adjustment. They also recorded a charge by the same amount few months back over another acquisition. Lynch 47, who left the merged company in the month of May this year also pointed at Meg Whitman’s over indulgence in the allegations will only make things worse.
The stock price of Hewlett-Packard Company (NYSE: HPQ) was marginally up by 1.96% to close at $11.94 in the last trading session.
For consideration of being featured on WallstreetPR, contact: Editor@Wallstreetpr.com