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!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

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

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?