HP says it may sell assets that underperform

The disclosure comes in the wake of a controversial $8.9 billion writedown of the company's Autonomy division

Hewlett-Packard will continue to evaluate potential divestitures of underperforming parts of its business, and the process could get messy, the company warned its investors in its annual 10-K document, which was filed in late December.

"When we decide to sell assets or a business, we may encounter difficulty in finding buyers or alternative exit strategies on acceptable terms in a timely manner, which could delay the achievement of our strategic objectives," HP added. "We may also dispose of a business at a price or on terms that are less desirable than we had anticipated."

Bloomberg first reported HP's statement on Tuesday.

In 2011, HP said it was considering a spin-off of its PC division but ultimately decided against such a move.

No specific business units were named in HP's 10-K filing as potentially coming up for sale, but speculation on HP's intentions may center on its Autonomy software business unit, which has been wracked in recent months by alleged accounting improprieties and a US$8.8 billion writedown in value. HP attributed some $5 billion of the writedown to the alleged accounting fraud.

HP has alleged the improprieties occurred prior to its $10.3 billion acquisition of Autonomy in October 2011. Autonomy founder Mike Lynch has strongly denounced HP's claims, even opening a website, AutonomyAccounts.org, to make a counter-case, arguing that HP hasn't provided enough detail about its allegations and the methodology behind the writedown.

However, software revenues have been rising at HP while other categories, including PCs and servers, are seeing sales fall, making a divestiture of Autonomy less likely.

HP is trying to turn its fortunes around overall under the leadership of former eBay CEO Meg Whitman. She succeeded Leo Apotheker who was ousted from the top job after a brief and tumultuous run. Apotheker, who engineered the Autonomy acquisition and had proposed the PC division spinoff, has also denied any knowledge of accounting misdeeds.

The U.S. Department of Justice has begun an investigation of the Autonomy deal, according to HP.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com

Join the newsletter!

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

Tags business issuesservicesAutonomyhardware systemssoftwarefinancial resultsrestructuringHewlett-Packard

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

Chris Kanaracus

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?