Mphasis dips as HP alleges Autonomy wrongdoing

HP took $8.8 billion in charges in the fourth quarter, with $5 billion tied to the problems at Autonomy, the Reuters report suggests.

Mphasis has dipped 3% to Rs 388 on reports that Hewlett-Packard Co (HP) said it took an $8.8 billion charge related to its acquisition of software firm Autonomy, citing "serious accounting improprieties," as it swung to a fourth-quarter loss.

“HP alleged that Autonomy's former management inflated revenue and gross margins. It said Autonomy executives mischaracterised revenue from low-end hardware sales as software sales and booked some licensing deals with partners as revenue, even though no customer bought the product,” the Reuters report suggests.

HP took $8.8 billion in charges in the fourth quarter, with $5 billion tied to the problems at Autonomy, it added. Mphasis is majority-owned by HP.

The stock opened at Rs 395 and hit a low of Rs 374 on the NSE. A combined 63,368 shares have changed hands on the counter in morning deals.