HP cuts profit as BSkyB legal costs rise
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IT giant cuts previously reported earnings figures after court awards BSkyB a further £70m in costs from EDS dispute
Hewlett-Packard has revised its most recent quarterly profit figures, after a UK court awarded BSkyB an additional £70 million in costs relating to its successful legal challenge to EDS, the IT services supplier that HP now owns.
The company revealed today that its fourth quarter net earnings were in fact $2.25 billion, down from the previously report figure of $2.32 billion.
In 2004, broadcaster BSkyB sued IT services provider EDS – which HP acquired in 2008 – over a failed customer relationship management (CRM) project. In January of this year, a court ruled that the supplier had deliberately mislead BSkyB over the length of time the project would require.
HP denies any wrong doing by EDS, and has said that it will appeal the ruling.
Shortly after the adjustment in earnings, workers' union PCS announced a two-day walkout of HP Enterprise Services employees effective from today.
The strike involves staff based in the north-east and north-west of England and is part of a wider industrial action campaign that aims to win improved job security and pay.
Former EDS employees had originally planned to walk-out in December 2009, but the one-day strike was called off after HP agreed to further talks with union representatives.
