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!

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 business issuesservicessoftwareHewlett-Packardfinancial resultshardware systemsrestructuringAutonomy

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

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?