HP cuts reported profit on additional BSkyB legal costs

The company had to cut its earnings after a court awarded extra payments in a lawsuit against EDS

Hewlett-Packard has been forced to reduce the amount of profit it reported last quarter to cover additional costs awarded against its EDS division in a lawsuit brought by British Sky Broadcasting in the U.K.

On Monday a U.K. court ordered EDS to make an interim payment to BSkyB of £70 million, or about $US112 million, which was on top of the £200 million HP had already paid out last month.

The extra payment means HP had to increase the money it had set aside to cover costs of the litigation, which in turn lopped about $73 million, or $0.03 per share, off its first-quarter profits, HP said Friday.

BSkyB sued EDS in 2004 over a CRM (customer relationship management) project it had been awarded four years earlier. BSkyB accused EDS of misrepresenting itself in a sales pitch, and HP inherited the suit when it bought EDS in 2008.

The court dismissed most of the claims against EDS in January, but HP was still left with significant penalties. It is trying to get permission to appeal the parts of the ruling that went against it.

The revision cut HP's first-quarter net earnings to $2.25 billion, or $0.93 per share, down from the $2.32 billion, or $0.96 per share, it had reported previously. HP reported the results Feb. 17.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags HPedsBritish Sky Broadcasting

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

James Niccolai

IDG News Service
Show Comments

Father’s Day Gift Guide

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?