Nov. 20 - Hewlett-Packard takes an $8.8 billion charge and sparks a war of words with the former management of Autonomy, the company it acquired last year.Conway G. Gittens reports.
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The daily digit today is $8.8 billion.
It is a charge that Hewlett-Packard had to take as a result of its purchase of an enterprise software firm, Autonomy.
HP says it found "serious accounting improprieties" at Autonomy that had occurred before HP bought it in 2011 for $11.5 billion.
But Autonomy's former management is fighting back, with a spokeswoman calling the claims "false".
Analysts criticized HP for overpaying on the deal, but the investment was a part of a multi-year restructuring aimed at shifting Hewlett-Packard towards enterprise services.
The multi-billion dollar charge tops a long list of Hewlett-Packard's problems: quarterly revenues were down 6.7 percent, profits for main business units tumbled, with the personal computer division recording the steepest drop, resulting in a net quarterly loss of almost $7 billion.
And comes one quarter after HP took an almost $11 billion charge for another unit.
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