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LONDON (Reuters) - British entrepreneur Mike Lynch artificially inflated revenue at his Autonomy utility enterprise before selling it to Hewlett Packard for $eleven billion, the U.S. firm’s attorney informed a London courtroom on Monday.
HP is suing Autonomy founder Lynch, as soon as hailed as Britain’s confess to invoice Gates, along with his former finance chief Sushovan Hussain for $5 billion after the 2011 deal went disastrously incorrect for the Silicon Valley community.
Lynch denies any wrongdoing and says HP’s mismanagement turned into accountable for the failure of the acquisition.
HP had purchased big information enterprise Autonomy with the goal of creating it the centerpiece of a blueprint to transform HP from a pc and printer maker into a application-focused enterprise functions firm, a shift that compete IBM had already pulled off.
however a 12 months later HP wrote down the value of Autonomy through $8.eight billion, announcing it had uncovered strict accounting improprieties. These Have led it to pursue Britain’s biggest-ever fraud trial against Lynch and Hussain.
attorney Laurence Rabinowicz QC, representing HP, informed London’s high courtroom that Lynch and Hussain had knowingly been involved in “frequent and systematic counterfeit accounting” to create a materially counterfeit lifelike of Autonomy’s budget.
Autonomy had engaged in “profits-pumping” by using encouraging consumers to buy its items in exchange for buying goods from them that it didn't want, restructuring deals to supply upfront license prices, and covertly promoting absolute hardware no longer even programmed with its application at a loss, he said.
In 2009, when Autonomy’s profitability become evidently seen to be broken, the company blamed launch prices for a brand new database search product known as SPE, instead of these activities, in a title with fiscal analysts, Rabinowicz pointed out.British entrepreneur Mike Lynch leaves the unreasonable court docket in London, Britain March 25, 2019. REUTERS/Henry Nicholls
A spokeswoman for Lynch spoke of in an emailed remark: “Mike Lynch is blissful to eventually Have the option to reply in courtroom to HP’s accusations. There become no fraud at Autonomy.”
“The precise account is that HP, after a history of failed acquisitions, botched the purchase of Autonomy and destroyed the enterprise, in search of in freight others. Mike aren't a scapegoat for his or her disasters.”
Lynch’s spokeswoman stated the case “distilled down to a dispute over transformations between UK and US accounting methods”.
Rabinowicz, youngsters, said in court docket the issues Have been no longer a count of complicated fiscal niceties however rather of limpid intention. “here is now not a company dispute about how to solemnize accounting processes,” he observed. “here's a fraud case.”
Lynch followed court cases from a lower back corner of the court docket, every so often scribbling notes or sending messages on his telephone.
The 53-year-historical, who additionally faces crook wire- and securities-fraud costs in the united states, which raise a maximum 25-yr penitentiary term, is probably going to loom before the London court around July.
Lynch acquired about $800 million for his stake in Autonomy, which everyone started to note dry earlier than it became achieved.
Many shareholders baulked on the seventy nine percent top class, and the architect of the strategy, then-chief govt Leo Apotheker became sacked.Slideshow (5 pictures)
Lynch was as a result fired with the aid of Meg Whitman, who took over as HP CEO in 2012.
each former CEOs are more likely to appear as witnesses in the trial, which is expected to proceed until the conclusion of the 12 months.
additional reporting by using Paul Sandle; editing with the aid of Alexander Smith
Hewlett-Packard's $5 billion legal combat in opposition t two of its personal former executives kicked off on Monday in London's high courtroom. or not it's the united kingdom's largest fraud trial, centring on HP's $eleven billion acquisition of British application company Autonomy.
The Silicon Valley giant has accused Autonomy's former CEO and cofounder Mike Lynch and its ex-CFO, Sushovan Hussain, of fraud and inflating Autonomy's value within the run-as much as the sale, main HP to wildly overpay. The $11.1 billion cost tag became a seventy nine% premium on Autonomy's share expense at the time.
In its opening arguments on Monday, HP argued that Autonomy's executives knowingly cooked the enterprise's books in training for a likely mega-sale, between the starting of 2009 to early 2011. HP received the enterprise in October 2011, and because of this wrote $eight.8 billion off its price.
Laurence Rabinowitz QC, for HP, argued that Hussain and Lynch gave a "deliberately counterfeit and deceptive repercussion as to what [Autonomy's] sources of income Have been."
study more: HP's blockbuster $5.1 billion prison combat in opposition t Autonomy's former CEO Mike Lynch kicks off today
Sushovan Hussain, Autonomy's former CFO. Autonomy
Lynch heard HP's arguments from the courtroom's public gallery, wearing a sombre expression and dressed in a gloomy proceed well with and blue tie. His co-defendant Hussain is soundless in the US, the plot he was convicted in a sever crook trial over the HP-Autonomy deal and awaits sentencing.HP posted early Autonomy emails displaying former CEO Lynch swearing at team of workers
HP will searching for to steer the elect that Autonomy lied about the passage it turned into really making cash, that HP's management didn't find this except after the acquisition, and that Lynch and Hussain principally were responsible for defrauding the enterprise.
Lynch's camp will quarrel that any loss in Autonomy's cost happened after the acquisition, and that it changed into HP's own failing for not managing the combination between the two organisations competently. Lynch's lawyers will likewise quarrel that he, as CEO, was not chargeable for the business's finances at a granular stage and wasn't monitoring every deal.
On Monday, HP attempted to resolve the thought that Lynch changed into a fingers-off CEO.
In its opening submission, the solid described Lynch as a "controlling and annoying individual" who did bewitch an in depth interest in individual deals and the ingredient of income.
HP published an e mail from Lynch to spotlight his shut pastime in a US government deal that become in hazard of collapsing. "If there is any problem I wish to learn about IT IN A F***ING MILLISECOND from everyone of you," Lynch wrote, in keeping with the documents.
HP added in its submission: "here is no longer the stance of a statesman viewing the trade from 10,000 toes."
An inner Autonomy e-mail, published by means of HP, displaying former CEO Mike Lynch swearing at workforce. HP
HP brought that Lynch turned into accountable for developing an "oppressive drudgery atmosphere" where employees felt massive pressure to create cash.
In yet another e mail from 2010, Lynch wrote to a income representative: "[You] ever transmit me an email enjoy this again AFTER the event and you are f**ing toast, I swear if I may squeeze down a mobile line to California you could accumulate to grasp without leisurely how the f*** I believe about this."HP alleged Autonomy used transactions to create its core utility trade witness more healthy
Leo Apotheker, the ousted HP CEO answerable for the Autonomy acquisition in 2011. AP
talking at the unreasonable courtroom on Monday morning, HP's QC Rabinowitz concentrated carefully on how Autonomy recorded its revenue in the run-as much as acquisition.
at the time of its acquisition, HP referred to, Autonomy billed itself as a software enterprise that analysed structured and unstructured information.
but, the solid argued, Autonomy did not really create everyone of its revenue by passage of licensing out or promoting that software, and as a substitute recorded a brace of sorts of "fallacious transactions" that made its core trade loom more hale than it basically was.
as an example, HP spoke of, Autonomy purchased and resold "mammoth" amounts of servers, laptops, keyboards, and mice at a loss, which had microscopic to achieve with its core software business.
Most of this hardware did not Come pre-loaded with Autonomy's software, HP spoke of, and there changed into no "business rationale" for promoting this kit apart from to inflate earnings figures. The hardware enterprise accounted for about $200 million of Autonomy's revenue between 2009 and 2011, or 11% of its complete enterprise.
HP pointed out it wasn't privy to this titanic underlying hardware enterprise until after it received Autonomy. HP likewise took situation with Autonomy's exercise of resellers, and brief-term deals that made immediate income growth appear to be decent but would cost the trade in the long run.
The solid argued in its opening submission:
"far from being a unreasonable margin, 'pure utility business', Autonomy became meeting its income and revenue increase goals with the aid of easily buying and selling third party hardware, without any connection to Autonomy utility. Autonomy changed into likewise the usage of loads of other fraudulent contraptions to accelerate revenue that should soundless Have been known in a later quarter or to invent income that on no account existed in the first location. once these fraudulent practices are stripped away, it becomes limpid that, in reality, the Autonomy group changed into experiencing microscopic boom and was falling invariably short of market expectations."
however Lynch's attorneys, of their opening submission, publish HP did be conscious of concerning the hardware sales. They failed to disaffirm the enterprise bought hardware, but couched this as a marketing method to witness after its company.
Lynch and Hussain Have denied everyone of HP's allegations, and their attorneys will create their opening arguments later this week. Lynch has countersued HP for $a hundred and sixty million.
The trial continues.
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Here they bewitch a witness under the hood of HP's new flagship workstation, the HP Z820, and examine both its design and performance advantages as a top-of-the-line system for video editing, graphics, effects, and other postproduction tasks.
An keen statistic came across my desk the other day. While there's a continuing decline in PC sales, it turns out that the workstation market has never been better. You can discern the market breakdown in motif 1 (below).
Figure 1. PC market share, via Jon Peddie Research.
Whether it's for video production, other media production, oil and gas exploration, anything with cumbersome 3D and graphics processing, there are two choices: You can either Have the trash can, or you can accumulate something that looks enjoy a true computer. At Braintrust Digital, they exercise both. But for the best performance under the hood in one natty and tidy package, they believe you should bewitch a witness at the HP Z series workstation line.
You'll find a number of reviews that we've done on HP Z series workstations on Streaming Media Producer (see related articles links at the bottom of this page), but today we're going to witness at the Z820, the immense boy of the HP line.
HP uses a design that was created in collaboration with BMW Design Works. The tower-based Z820 workstation is designed to stream copious amounts of air through the chassis, but to achieve so at a sound level that's more akin to a consumer tower design. It does so by using custom-designed airflow pathways coupled with big fans (Figure 2, below). The bigger the fan, the better the airflow and lower revolutions per minute. When it comes to workstation fans, size matters.
Figure 2. The HP Z820's big fans better airflow.
You'll find several other essential design elements when you pop the hood of the Z820. Design is likewise key to functionality when it comes to troubleshooting or upgrading the unit (Figure 3, below). The HP Z820 can be disassembled without needing tools, including a screwdriver. We've done this in a number of their reviews on the HP Z Workstation line. Anything can be replaced with the flip of a switch or two.
Figure 3. The HP Z820 under the hood. Click the image to discern it at plenary size.
HP's Z1 is the first all-in-one computer with workstation components and domain serviceability. Here, encoding expert Jan Ozer takes a witness at how this workstation-class portable PC fared in a live production and webcast environment, with testing accent in 3 areas: rendering, streaming encoding, and live encoding.
How does the all-in-one that's won over the workstation mash stack up against laptop form-factor workstations for speed, power, and upgradability for streaming media producers?
Is this HP's random to polish off the Apple all-in-one competitor?
HP's new, lightweight, full-powered 27-inch monitor fits into several workflows with its adjustable, detachable basis and varied connectivity options.
Who says hefty laptops can't be spry and quick?
HP's (NYSE:HPQ) stock has tumbled about 20% over the past six months as the world's second-largest PC maker struggles with decelerating sales of its PCs and printers. However, HP has likewise been spreading out its bets by dabbling in other markets enjoy virtual reality headsets. After all, global shipments of augmented and virtual reality headsets could rise from 8 million devices in 2018 to 52 million in 2022, according to CSS Insight.
Looking to tap into that growth, HP recently unveiled the HP Reverb VR headset, a high-end Windows Mixed Reality headset that sports a 2160 x 2160 pixel resolution per eye (giving it a combined 4K resolution), a 114-degree domain of view, and "inside-out" tracking, which tracks movements with a headset's own cameras instead of ones awkwardly placed around a room. That's everyone in a light 1.1-pound package.
The consumer version costs $599, and the Pro version, which includes a cable for the HP Z VR backpack (its high-end, VR-ready PC in a backpack) and a fabric face mask, costs $649.
The Reverb's 4K resolution and wide domain of view allow it to present high-fidelity VR experiences, and create it one of the most powerful headsets on the market today. However, it's pricier than HTC's (NASDAQOTH:HTCKF) Vive and Samsung's (NASDAQOTH:SSNLF) Odyssey+, which both cost about $500. Facebook's (NASDAQ:FB) original Oculus Rift costs $349, while HTC's professional-grade Vive Pro costs $1,000.
HP is clearly trying to leverage its reputation as a top PC maker to challenge those high-end headset makers. But will the Reverb remain a niche device as the market pivots toward less-powerful stand-alone headsets enjoy Facebook's Oculus Quest and Oculus Go?Why is HP launching a high-end VR headset?
HP generates its revenue from two core businesses: personal systems (PCs and workstations) and printers. Here's how those businesses fared over the past five quarters in terms of year-over-year revenue growth.
HP's PC sales hit a brick wall eventual quarter due to tough competition, longer upgrade cycles, and a production bottleneck caused by an ongoing shortage of CPUs. Its printer division struggled with sluggish hardware claim in Europe, the Middle East, and Africa, and competition from producers of generic printer supplies.
With both of its growth engines sputtering out, HP needs to launch new products to boost it sales. For the personal systems business, this means introducing new convertible covet laptops and Omen gaming PCs, which are tethered to its Omen game streaming service.
The introduction of the Reverb complements HP's gaming push, and the company might eventually bundle the headset with its Omen gaming PCs. However, two issues that harm claim for the Rift, Vive, and other high-end headsets will likely preclude the Reverb from gaining much steam.
First, its cost tag is too high for mainstream consumers, who can buy a decent gaming PC, two gaming consoles, or a smartphone for the same price. Second, the Reverb needs to be tethered to a VR-ready gaming PC, which costs at least $500 and restricts a user's movements.
HP is trying to address the mobility issue by tethering the Reverb to its HP Z VR backpack, but the wearable PC costs $4,000, and the combination is much more cumbersome than stand-alone headsets enjoy the Oculus proceed or smartphone-based ones enjoy Samsung's Gear VR.
Therefore the Reverb and the HP Z VR backpack might be an acceptable setup for inevitable tech demos or enterprise uses, but it's highly questionable that mainstream consumers will expend $4,600 to relish cutting edge VR content.It won't poke the needle for HP
The six best-selling VR headsets of 2018 were the PlayStation VR, Oculus Go, Oculus Rift, Gear VR, Vive, and Vive Focus, in that order, according to SuperData. However, zilch of those devices came close to surpassing a million shipments per quarter during the year.
The force of Sony's (NYSE:SNE) PSVR can be attributed to the fact that it had a built-in market with the PS4, and developers were involved to spice up their games with VR features. The success of the Oculus proceed indicates that consumers want cheaper headsets that aren't tethered to PCs or smartphones. That's why SuperData expects the upcoming Oculus Quest, which upgrades the proceed with a faster chip and positional tracking features (which track a user's position with internal cameras), to hit 1.3 million shipments in 2019.
HP's focus on the high-end, PC-bound VR market restricts it to competing against Facebook, HTC, and Samsung in the much smaller niche market of affluent tech enthusiasts and enterprise customers. HP probably avoided a cheaper stand-alone device for two reasons: It lacks the mobile expertise, and a stand-alone device wouldn't complement its gaming PC efforts. However, it likewise means that the Reverb probably won't poke the needle for HP's personal systems trade anytime soon.
While things did appear to proceed a bit unhurried during the first quarter of 2011, it looks enjoy IT companies aren't wasting any time releasing new devices now.
Also, those that deal in several types of products instead of specializing in one are especially active, as HP just proved.
Recently, it delivered the g6s 1.56-inch notebook and even said that its TouchPad webOS tablet would be beyond number one on the market.
This other poke is a less flashy one, consisting of three new mobile workstations powered by the well-known Sandy Bridge platform.
More specifically, second generation Core series central processing units (CPUs) can be selected, up to the Core i7-2920XM.
The newcomers are called EiteBook 8760w 8560w and 8460w and Have screens sizes of 17.3 inches, 15.6 inches and 14 inches, respectively.
The memory capacity available can proceed up to 32 GB of DDR3, while one or two storage drives (HDD or SSD) provide storage space.
What's more, the DVD or Blu-ray drive can even be completely done away with in order to achieve in a HDD instead.
Of course, these being workstations, suitably mighty graphics are needed, not just the CPUs' built-in solution, hence the existence of the AMD FirePro M5950 professional graphics card or the NVIDIA Quadro 5010M (other options exist as well).
The newcomers can be examined individually here and Have starting prices of $1,299 to $1,899. everyone of them feature USB 3.0, 802.11 b/g/n WiFI, 6-cell, 8-cell or 9-cell batteries and optional Bluetooth.
Finally, the hardware is enclosed in aluminum-alloy cases with the “FORGE” framework design and cast titanium-alloy parade latches.
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ACT [1 Certification Exam(s) ]
Admission-Tests [13 Certification Exam(s) ]
ADOBE [93 Certification Exam(s) ]
AFP [1 Certification Exam(s) ]
AICPA [2 Certification Exam(s) ]
AIIM [1 Certification Exam(s) ]
Alcatel-Lucent [13 Certification Exam(s) ]
Alfresco [1 Certification Exam(s) ]
Altiris [3 Certification Exam(s) ]
Amazon [2 Certification Exam(s) ]
American-College [2 Certification Exam(s) ]
Android [4 Certification Exam(s) ]
APA [1 Certification Exam(s) ]
APC [2 Certification Exam(s) ]
APICS [2 Certification Exam(s) ]
Apple [69 Certification Exam(s) ]
AppSense [1 Certification Exam(s) ]
APTUSC [1 Certification Exam(s) ]
Arizona-Education [1 Certification Exam(s) ]
ARM [1 Certification Exam(s) ]
Aruba [6 Certification Exam(s) ]
ASIS [2 Certification Exam(s) ]
ASQ [3 Certification Exam(s) ]
ASTQB [8 Certification Exam(s) ]
Autodesk [2 Certification Exam(s) ]
Avaya [101 Certification Exam(s) ]
AXELOS [1 Certification Exam(s) ]
Axis [1 Certification Exam(s) ]
Banking [1 Certification Exam(s) ]
BEA [5 Certification Exam(s) ]
BICSI [2 Certification Exam(s) ]
BlackBerry [17 Certification Exam(s) ]
BlueCoat [2 Certification Exam(s) ]
Brocade [4 Certification Exam(s) ]
Business-Objects [11 Certification Exam(s) ]
Business-Tests [4 Certification Exam(s) ]
CA-Technologies [21 Certification Exam(s) ]
Certification-Board [10 Certification Exam(s) ]
Certiport [3 Certification Exam(s) ]
CheckPoint [43 Certification Exam(s) ]
CIDQ [1 Certification Exam(s) ]
CIPS [4 Certification Exam(s) ]
Cisco [318 Certification Exam(s) ]
Citrix [48 Certification Exam(s) ]
CIW [18 Certification Exam(s) ]
Cloudera [10 Certification Exam(s) ]
Cognos [19 Certification Exam(s) ]
College-Board [2 Certification Exam(s) ]
CompTIA [76 Certification Exam(s) ]
ComputerAssociates [6 Certification Exam(s) ]
Consultant [2 Certification Exam(s) ]
Counselor [4 Certification Exam(s) ]
CPP-Institue [2 Certification Exam(s) ]
CPP-Institute [2 Certification Exam(s) ]
CSP [1 Certification Exam(s) ]
CWNA [1 Certification Exam(s) ]
CWNP [13 Certification Exam(s) ]
CyberArk [1 Certification Exam(s) ]
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Esri [2 Certification Exam(s) ]
ExamExpress [15 Certification Exam(s) ]
Exin [40 Certification Exam(s) ]
ExtremeNetworks [3 Certification Exam(s) ]
F5-Networks [20 Certification Exam(s) ]
FCTC [2 Certification Exam(s) ]
Filemaker [9 Certification Exam(s) ]
Financial [36 Certification Exam(s) ]
Food [4 Certification Exam(s) ]
Fortinet [14 Certification Exam(s) ]
Foundry [6 Certification Exam(s) ]
FSMTB [1 Certification Exam(s) ]
Fujitsu [2 Certification Exam(s) ]
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Google [4 Certification Exam(s) ]
GuidanceSoftware [2 Certification Exam(s) ]
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HDI [9 Certification Exam(s) ]
Healthcare [3 Certification Exam(s) ]
HIPAA [2 Certification Exam(s) ]
Hitachi [30 Certification Exam(s) ]
Hortonworks [4 Certification Exam(s) ]
Hospitality [2 Certification Exam(s) ]
HP [752 Certification Exam(s) ]
HR [4 Certification Exam(s) ]
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Huawei [21 Certification Exam(s) ]
Hyperion [10 Certification Exam(s) ]
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LSI [3 Certification Exam(s) ]
Magento [3 Certification Exam(s) ]
Maintenance [2 Certification Exam(s) ]
McAfee [8 Certification Exam(s) ]
McData [3 Certification Exam(s) ]
Medical [69 Certification Exam(s) ]
Microsoft [375 Certification Exam(s) ]
Mile2 [3 Certification Exam(s) ]
Military [1 Certification Exam(s) ]
Misc [1 Certification Exam(s) ]
Motorola [7 Certification Exam(s) ]
mySQL [4 Certification Exam(s) ]
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NCLEX [2 Certification Exam(s) ]
Network-General [12 Certification Exam(s) ]
NetworkAppliance [39 Certification Exam(s) ]
NI [1 Certification Exam(s) ]
NIELIT [1 Certification Exam(s) ]
Nokia [6 Certification Exam(s) ]
Nortel [130 Certification Exam(s) ]
Novell [37 Certification Exam(s) ]
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PayPal [1 Certification Exam(s) ]
Pegasystems [12 Certification Exam(s) ]
PEOPLECERT [4 Certification Exam(s) ]
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Polycom [2 Certification Exam(s) ]
PostgreSQL-CE [1 Certification Exam(s) ]
Prince2 [6 Certification Exam(s) ]
PRMIA [1 Certification Exam(s) ]
PsychCorp [1 Certification Exam(s) ]
PTCB [2 Certification Exam(s) ]
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QlikView [1 Certification Exam(s) ]
Quality-Assurance [7 Certification Exam(s) ]
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See-Beyond [1 Certification Exam(s) ]
Siemens [1 Certification Exam(s) ]
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SOA [15 Certification Exam(s) ]
Social-Work-Board [4 Certification Exam(s) ]
SpringSource [1 Certification Exam(s) ]
SUN [63 Certification Exam(s) ]
SUSE [1 Certification Exam(s) ]
Sybase [17 Certification Exam(s) ]
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Teacher-Certification [4 Certification Exam(s) ]
The-Open-Group [8 Certification Exam(s) ]
TIA [3 Certification Exam(s) ]
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Trainers [3 Certification Exam(s) ]
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Veeam [2 Certification Exam(s) ]
Veritas [33 Certification Exam(s) ]
Vmware [58 Certification Exam(s) ]
Wonderlic [2 Certification Exam(s) ]
Worldatwork [2 Certification Exam(s) ]
XML-Master [3 Certification Exam(s) ]
Zend [6 Certification Exam(s) ]
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