Response to HP Filing 17 September 2014
September 18, 2014
Three years on, after accusations of multi-billion dollar fraud, is this it? HP produces some out of context information, twisted to support false assumptions which is easily explained. There is no fraud.
- Under IFRS, MicroTech was Autonomy’s customer. This was a fully-completed sale for which we received most of the money. The remainder was written off by HP, not Autonomy
- HP reviewed the actual paperwork on this deal pre-acquisition as part of due diligence
- In the industry, where resellers are involved in transaction chains they may often not meet the final end user. It is irrelevant
- We have published information that shows that hardware was clearly recorded as hardware, not software, in the books of the company
- Since making its original allegations in November 2012, HP has revised its statements regarding hardware several times, from claiming total ignorance that Autonomy sold any hardware, then saying that they “eventually” knew about hardware sales, to saying that they had been told in due diligence those sales were “strategic accounts” and “appliance sales”. There is clear back-tracking in their statements
- The “strategic accounts” that we sold hardware to included Bloomberg, Citibank, Bank of America, Morgan Stanley, JPMorgan Chase, all long-standing strategic customers
- The definition of OEM, which was in Autonomy’s annual report, makes it clear that not all OEMs are royalty deals
- Did HP read the annual report?
- Autonomy’s hosting contracts were completely properly structured, reviewed by Deloitte and by HP before the acquisition
- Autonomy complied with Deloitte’s recommendations and Autonomy’s accounting and disclosures were ticked off by Deloitte
- HP is looking at the recommendation documents without checking what was then done and agreed in the light of those recommendations
- If all of the write down was the standalone vale of Autonomy, then HP is alleging that Autonomy’s value before they acquired the company was zero, which is obviously absurd