Mike Lynch, former CEO of software company Autonomy Inc. finally retorts after a week of being accused to have \u201ccooked the books\u201dof his company before Hewlett-Packard Company (NYSE: HPQ) took over last year. The acquiring technology company had accused the Lynch\u2019s team of having inflated pre acquisition revenues to make things look brighter before last year\u2019s acquisition. The general counsel of Hewlett-Packard Company (NYSE: HPQ) on November 15th, 2012 had announced that revenue of $200 million was recorded improperly during the fiscal years 2009 and 2010. It said that Autonomy classified revenues from retail sales of hardware as software revenues and booked bogus sales.<\/p>\n
Deloitte LLC, the firm which audited books of accounts of Autonomy for the fiscal year 2010 said did not find any irregularities in the financial statements. Meg Whitman CEO Hewlett-Packard had stated that his company had based its decision to acquire Autonomy on the basis of the financial statements audited by Deloitte.<\/p>\n
The PC market leader Hewlett-Packard Company (NYSE: HPQ) had announced an accounting write down of $ 8.8 billion , a larger chunk ($5 billion) of this amount was on account of accounting or recording irregularities in Autonomy\u2019s books before its acquisition according to Hewlett-Packard Company (NYSE: HPQ). These claims stirred a hot debate among accounting experts, audit professional and experts who are questioning the authenticity of the allegation\u2019s made by Hewlett-Packard Company (NYSE: HPQ). Experts also agreed with what Lynch\u2019s contention that a $200million of improper recording of revenues do not add up to an impairment charge of $9 billion<\/p>\n
\u201cAfter being ambushed by all this yesterday, I\u2019ve had a chance to look at some of the things that they\u2019re saying — it just doesn\u2019t add up,\u201d Lynch said yesterday in an interview. \u201cHP is looking for scapegoats, and I\u2019m afraid I\u2019m not going to be one of those.\u201d Said by Former Autonomy Corp. Chief Executive Officer Mike Lynch in an interview.<\/p>\n
This is not the first time that Hewlett-Packard Company (NYSE: HPQ) is making such an adjustment. They also recorded a charge by the same amount few months back over another acquisition. Lynch 47, who left the merged company in the month of May this year also pointed at Meg Whitman\u2019s over indulgence in the allegations will only make things worse.<\/p>\n
The stock price of Hewlett-Packard Company (NYSE: HPQ) was marginally up by 1.96% to close at $11.94 in the last trading session.<\/p>\n
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