HP Takes $8.8 Billion Charge on Autonomy
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For the quarter, HP reported net revenue of $30.0 billion, for a 7 percent year-over-year decline. For the full year, revenue came in at $120 billion, down by 5 percent from 2011. HP reported a net loss of $6.9 billion for the fourth quarter and a net loss of $12.7 billion for the full year.
One of the largest items impacting HP during the fourth quarter is an $8.8 billion dollar impairment charge related to alleged accounting wrongdoing.
"The majority of this impairment charge is linked to serious accounting improprieties, disclosure failures and outright misrepresentations that occurred prior to HP's acquisition of Autonomy and the associated impact on the expected financial of the business over the long term," HP CEO Meg Whitman said during the company's earnings call.
While the Autonomy writedown is a big ticket item on HP's books, HP's server business is also facing some challenges. HP's Servers, Storage and Networking (ESSN) unit reported revenue of $5.1 billion, which is a 9 percent year over year decline.