HP reports massive $8.8-billion charge; shares plummet

Hewlett-Packard Co. reported a hefty $8.8-billion charge in its fourth quarter, largely due to serious accounting problems stemming from its 2011 purchase of a British software maker.

The Palo Alto company released its earnings Tuesday and revealed that it had to take a massive charge to align the accounting value of Autonomy Corp., which it bought for $10 billion last year, with its real value.

The writedown, combined with a weak first-quarter outlook for struggling HP, caused shares to plunge in morning trading. The company's stock was down $1.44, or 10.8%, to $11.86 at 9:20 a.m. PST.

"The majority of this impairment charge is linked to serious accounting improprieties, disclosure failures and outright misrepresentations at Autonomy Corp. plc that occurred prior to HP's acquisition of Autonomy and the associated impact of those improprieties, failures and misrepresentations on the expected future financial performance of the Autonomy business over the long term," HP said in a statement. "The balance of the impairment charge is linked to the recent trading value of HP stock."

Quiz: The week in business   

HP Chief Executive Meg Whitman said the company began to realize something was amiss after Autonomy founder and Chief Executive Mike Lynch left on May 23, according to the Associated Press. A senior Autonomy executive then volunteered information about the accounting improprieties, which led to an internal investigation.

The case has been referred to the U.S. Securities and Exchange Commission and the UK's Serious Fraud Office, the AP said, citing Whitman. HP will also try to recoup some of what it paid for Autonomy through lawsuits.

Autonomy is a software company that helps organizations understand the meaning in information, according to the firm's website: "A pioneer in its industry, Autonomy's unique meaning-based technology is able to make sense of and process unstructured, 'human information,' and draw real business value from that meaning."

Quiz: How much do you know about California's economy?

Autonomy was founded in 1996 and has more than 65,000 customers worldwide.

HP's fourth-quarter revenue was $30 billion, down 7% from the same quarter in 2011 and down 4% when adjusted for the effects of currency. The company reported a loss of $6.9 billion, or $3.49 a share, compared with a profit of $200 million, or 12 cents, a year earlier.

Across business categories, personal systems revenue was down 14% year-over-year; printing revenue declined 5%; services revenue fell 6% and enterprise servers, storage and networking dropped 9%.

Software revenue, however, grew 14% year over year, including the results of Autonomy.

For the first quarter of fiscal 2013, HP estimated earnings per share to be in the range of 34 to 37 cents.

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Existing-home sales and builder confidence rise

WASHINGTON -- The housing market recovery showed signs it is continuing to strengthen as sales of existing homes increased 2.1% in October from the previous month and a measure of home-builder confidence jumped in November to its highest level since 2006.

Sales of existing homes rose to a seasonally adjusted annual rate of 4.79 million last month, up from a downwardly revised 4.69 million rate in September, that National Assn. of Realtors reported Monday. Sales were up 10.9% in October from a year earlier.

Stronger demand helped push up the median home price nationwide to $178,600 in October, an increase of 11.1% from a year earlier, the group said. It was the eighth-straight month to show a year-over-year increase, the first time that's happened since 2005-2006.

Fewer houses on the market also helped drive price increases. There were 2.14 million existing homes for sale in October, down 1.4% from September. That translates to a 5.4-month supply at the current sales rate, the lowest level since February 2006.

Sales by distressed homeowners still accounted for a large chunk of activity. Foreclosures and short sales made up 24% of October's sales. That was the same level as in September, but down from 28% a year earlier.

Superstorm Sandy had some negative impact on sales, the group said.

The Northeast, which was hit hard by the storm, was the only region to show a decrease in sales in October from the previous month. Sales were down 1.7% there, while they increased 1.8% in the Midwest, 2.1% in the South and 4.4% in the West.

"Home sales continue to trend up and most October transactions were completed by the time the storm hit, but the growing demand with limited inventory is pressuring home prices in much of the country," said Lawrence Yun, chief economist at the Realtors group. 

He expected more of an impact in the Northeast in coming months.

The improving housing market led to a boost in builder confidence, according to a measure released Monday.

The National Assn. of Home Builders/Wells Fargo Housing Market Index rose five points in November to 46 from the previous month. It was the seventh straight monthly increase, lifting the index to its highest level since May 2006, before the crash of the subprime housing market.

The index remained below 50, indicating that builders who view sales conditions as poor still outnumber those who view them as good. But the index is up sharply from its 19 reading a year ago, the home builders group said.

“Builders are reporting increasing demand for new homes as inventories of foreclosed and distressed properties begin to shrink in markets across the country,” said Barry Rutenberg, a home builder from Gainesville, Fla., and chairman of the builders' group.

“In view of the tightening supply and other improving conditions, many potential buyers who were on the fence are now motivated to move forward with a purchase in order to take advantage of today’s favorable prices and interest rates,” he said. 

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California home sales pop in October

Most aid from mortgage settlement in state going to short sales

Follow Jim Puzzanghera on Twitter and Google+.

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MaleSurvivor Conference Examines Sexual Abuse in Sports

It was the summer before high school, and Christopher Gavagan, then 13, was preparing to leave the safe familiarity of the friends he had known during his boyhood. With a plan to excel at ice hockey, he began training on inline skates, moving through his New York City neighborhood, up and down the streets until, he said, “I turned down the wrong street.”

Gavagan, now a filmmaker, was one of eight panelists who participated Friday in a discussion about young athletes who have been sexually assaulted or abused by their coaches. The panel was part of the MaleSurvivor 13th International Conference, held this year at John Jay College of Criminal Justice. The conference brought together men who have been sexually abused, as well as psychologists, social workers, academics and members of the legal community.

A dour procession of stories about sexual misconduct by coaches toward their male charges has come to light in recent months. Jerry Sandusky, a former assistant football coach at Penn State, was sentenced in October to 30 to 60 years in prison on 45 counts of child molesting. Sugar Ray Leonard wrote in his autobiography last year that he was sexually molested by an Olympic boxing coach. The N.H.L. players Theo Fleury and Sheldon Kennedy were sexually abused as teenagers by their hockey coach Graham James.

The prevalence of sexual abuse among all boys 17 and under has been variously estimated to be as low as 5 percent and as high as 16 percent. For some of the millions of children who participate in sports nationwide, and their parents, sexual assault in a sports context has its own dynamic.

“Sports is a place where parents send their boys to learn skills, to learn how to be teammates and how to work together — to make boys stronger and healthier,” said Dr. Howard Fradkin, author of “Joining Forces,” a book about how men can heal from sexual abuse. “It’s the place where we send our boys to grow up. The betrayal that occurs when abuse occurs in sports is damaging because it destroys the whole intent of what they started out to do.”

When Gavagan, now 38, turned down that fateful street, and stepped briefly into the house of a man recommended as a hockey coach by a couple of female acquaintances, what greeted him, he said, was “a young boy’s dream come true.”

The dream Gavagan glimpsed was embodied in the trophy room of the house.

“It was everything I wanted to be right there,” recalled Gavagan, who is working on a feature-length documentary on sexual abuse in youth sports, in which he interviews other sexual-abuse victims and his own attacker, against whom he has never pressed charges. In addition to the shiny relics that seemed to give testimony to the man’s coaching prowess, Gavagan said, the trophy room had pictures of hockey teams the man had coached and workout equipment — the physical tools promising the chance to get bigger and stronger.

“To a skinny 13-year-old, it was like winning the lottery,” Gavagan said.

Christopher Anderson, the executive director of MaleSurvivor, said sexual abuse — basically nonconsensual touching or sexual language — is devastating under any circumstance, but coach and player often have a special relationship.

“Especially as you progress higher and higher, the coach can become just as important in some ways to an athlete as the relationship with his parents might have,” Anderson said. “In some cases, it’s a substitute for parents.”

He added: “There’s also a fundamentally different power dynamic. When you’re a young star, the coach can literally make or break your career as an athlete.”

But caution has to extend beyond coaches who guide future Olympians, Gavagan said, noting that his coach was not of that caliber.

“The entire grooming process was so subtle,” Gavagan said. “It’s not like when I first went into his house that he tried to grope me.”

First, Gavagan said, the coach said it was all right to curse in that house. On another visit it was fine to have a beer, which led on another day to Playboy magazine and on subsequent days to harder pornography and harder liquor. It was six months before the coach laid an explicitly sexual hand on him, Gavagan said.

“I didn’t feel like a sudden red line had been crossed — the line had been blurred,” Gavagan said, explaining that he avoided his parents when he returned home with liquor on his breath by telling them he was exhausted and going straight to his room. (Unlike many sexual-abuse victims, Gavagan said his parents, with whom the coach had ingratiated himself, were supportive of their son, and his was a loving family. He said that if he had approached them about the coach, they would have listened.)

Another aspect of sexual abuse in sports is the environment, which emphasizes a kind of macho ethic.

“What is most different about abuse is the sports culture itself,” Fradkin said. “It is a culture that promotes teamwork and teaches boys to shrug it off. When a boy or man is abused, he risks being thrown off the team if he should speak the truth because he’ll be seen as being disloyal — and weak.”

At 17, after four years with his coach, Gavagan said he “aged out” of his coach’s target age.

“At the time I had no idea of how it would impact my life, but the unhealthy lessons about relations, trust and the truth set a time bomb that would detonate my relationships for the next 10 years,” Gavagan said.

As a word of caution, Anderson said the lesson for parents should not be that sports are dangerous.

“It should be that there are sometimes dangerous people who gravitate to sporting organizations and our safeguards aren’t good enough yet to adequately protect our children,” he said. “That doesn’t mean that we should be pulling our kids from soccer and baseball and basketball. What it means is that parents need to be vigilant.”

He added: “They need to be proactive with athletic organizations to make sure that policies are in place — such as doing criminal background checks on staff and having a procedure where young athletes can complain about inappropriate behavior — that make sure children are protected.”

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More small businesses to give parties, bonuses, time off for holidays

Small-business owners are increasingly feeling the holiday cheer, with more giving bonuses and throwing parties than in recent years, according to a new report.

A survey of 501 bosses managing fewer than 100 employees each found that, on average, they plan to give out a 9% paycheck boost to their workers this year. Some 35% of small-business owners will give bonuses, up from 29% last year, according to the poll from American Express.

And four in 10 supervisors said they’ll throw a holiday party, up from 35% in 2011. But they’ll cut back slightly on fete costs, spending $959 on average instead of $1,029. Half of companies will give their workers time off for the holidays, an improvement on 2011.

More than half of bosses will give their clients and customers gifts, up from 43% last year. Their Santa budgets will average out to $958 each, compared with $827 last year and $740 the year before.

Scrooging is falling out of favor: A third of small-business owners last year said they wouldn’t do anything special for the holidays, a portion that this year is closer to two in 10.

But don’t look to small businesses to extend the goodwill to shoppers. Just 19% said they will offer discounts or other deals to boost holiday sales, down 24% from last year and far below the 41% of retailers who said they would do the same.

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A young shooting victim wrestles with his fears

After the nightmares started, Davien Graham avoided his bicycle.

In his dreams, he pedaled his silver BMX bike through his neighborhood, heard gunfire and died.

If I stay off my bike, I'll be safe, he thought.

He placed it in a backyard shed, where it sat for months. But Jan. 12, 2008, dawned so spectacular that Davien decided to risk it.

He ate Cap'n Crunch Berries cereal, grabbed the bike and rode a half-mile west to Calvary Grace, a Southern Baptist church that was his haven.

Davien lived with an unemployed aunt and uncle, a former Crip, and five other kids in a cramped four-bedroom house in Monrovia, about 20 miles east of Los Angeles.

Yet as a 16-year-old junior at Monrovia High School, Davien earned A's and B's, played JV football and volunteered with the video club. He cleaned the church on Saturdays for minimum wage.

If I live right, God will protect me.

That afternoon, sweaty from cleaning, Davien reached for his wallet to buy a snack — only to realize he had forgotten it at home.

After returning to his house, he caught his reflection in the front window. He was 6 feet 2 and wiry. His skinny chest was beginning to broaden. He was trying to add weight to his 160-pound frame in time for varsity football tryouts.

He showered, told his aunt he would be right back and again jumped on his bike, size-14 Nike Jordans churning, heading for a convenience store near the church.

At the store, he bought Arizona fruit punch and lime chili Lay's potato chips. He recognized a kindergarten-age Latino boy and bought him Twinkies.

Davien pedaled down the empty sidewalk along Peck Road. He could hear kids playing basketball nearby. As he neared the church, a car passed, going in the opposite direction. He barely noticed.

He heard car tires crunching on asphalt behind him. He glanced back, expecting a friend.

Instead he heard: "Hey, fool."

The gun was gray. It had a slide. Davien recognized that much from watching the Military Channel.

Behind the barrel, he saw forearms braced to fire and the face of a Latino man, a former classmate.

The gunman shouted, "Dirt Rock!," cursing a local black gang, the Duroc Crips.

Davien's mind raced: Don't panic. Watch the barrel. Duck.

Suddenly, he was falling. Then he was on the ground, looking up at the church steeple and the cross.

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Summary: A look at the 4 new Kindle Fire models

Amazon.com Inc. started shipping a large-screen version of its Kindle Fire tablet computer on Thursday, ahead of schedule. Here is a look at the new Fires announced in September:

— Kindle Fire, with 7-inch screen, 1024 by 600 pixels. $ 159, with 8 gigabytes of storage. Weighs 14.1 ounces. Battery life of 8.5 hours. Started shipping Sept. 14.

— Kindle Fire HD, with 7-inch screen, 1280 by 800 pixels. $ 199 with 16 GB of storage or $ 249 with 32 GB of storage. Weighs 13.9 ounces. Battery life of 11 hours. Started shipping Sept. 14.

— Kindle Fire HD 8.9″, with 8.9-inch screen, 1920 by 1200 pixels. $ 299 with 16 GB of storage or $ 369 with 32 GB of storage. Weighs 20 ounces. Battery life of 10 hours. Started shipping Thursday.

— Kindle Fire HD 8.9″ 4G LTE Wireless, with 8.9-inch screen, 1920 by 1200 pixels. $ 499 with 32 GB of storage or $ 599 with 64 GB of storage. Can connect to AT&T Inc.‘s 4G LTE wireless network. Weighs 20 ounces. Battery life of 10 hours. Will start shipping Tuesday.

Gadgets News Headlines – Yahoo! News

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'Twilight' finale dawns with $141.3M weekend

LOS ANGELES (AP) — The sun has set on the "Twilight" franchise with one last blockbuster opening for the supernatural romance.

"The Twilight Saga: Breaking Dawn — Part 2" sucked up $141.3 million domestically over opening weekend and $199.6 million more overseas for a worldwide debut of $340.9 million, according to studio estimates Sunday.

The finale ranks eighth on the list of all-time domestic debuts, and leaves "Twilight" with three of the top-10 openings, joining 2009's "New Moon" (No. 7 with $142.8 million) and last year's "Breaking Dawn — Part 1" (No. 9 with $138.1 million).

Last May's "The Avengers" is No. 1 with $207.4 million. "Batman" is the only other franchise with more than one top-10 opening: July's "The Dark Knight Rises" (No. 3 with $160.9 million) and 2008's "The Dark Knight" (No. 4 with $158.4 million).

Though "Twilight" still is a female-driven franchise, with girls and women making up 79 percent of the opening-weekend audience, the finale drew the series' biggest male crowds. Action-minded guys had more to root for in the finale as Kristen Stewart, Robert Pattinson and Taylor Lautner join in a colossal battle to end the story of warring vampires and werewolves.

"Our male audience particularly has enjoyed this film," said Richie Fay, head of distribution for Lionsgate, whose Summit Entertainment banner releases the "Twilight" movies. "With the action scenes in this one, we're hoping the holdover business will reflect the fact that males have kind of found it out."

The movie also helped lift Lionsgate into the big leagues among Hollywood studios. Paced by its $400 million smash with "The Hunger Games" and now the "Twilight" finale, Lionsgate surpassed $1 billion at the domestic box office for the first time.

Some box-office watchers had expected the last "Twilight" movie to open with a franchise record the way the "Harry Potter" finale did last year with $169.2 million, the second-best domestic debut on the charts.

"I thought that for the final installment, it might eclipse the franchise record, but to look at $141.3 million and say that's a disappointment, that's kind of crazy," said Paul Dergarabedian, an analyst for box-office tracker Hollywood.com. "It's one of the most consistently performing franchises of all time."

The "Twilight" finale took over the No. 1 spot from Sony's James Bond adventure "Skyfall," which slipped to second place with $41.5 million domestically in its second weekend. "Skyfall" raised its domestic total to $161.3 million.

The franchise's third film starring Daniel Craig as Bond, "Skyfall" began rolling out overseas in late October and has hit $507.9 million internationally at the box office. The film's global total climbed to $669.2 million, helping to lift Sony to its best year ever with $4 billion worldwide, topping the studio's $3.6 billion haul in 2009.

"Skyfall" passed the previous franchise high of $599.2 million worldwide for 2006's "Casino Royale."

Steven Spielberg and Daniel Day-Lewis' Civil War drama "Lincoln" expanded nationwide after a week in limited release and came in at No. 3 with $21 million. Distributed by Disney, "Lincoln" lifted its domestic haul to $22.4 million.

The comic drama "Silver Linings Playbook," released by the Weinstein Co., got off to a good start in limited release, taking in $458,430 in 16 theaters for a solid average of $28,652 a cinema. By comparison, the "Twilight" finale averaged $34,717 in 4,070 theaters.

"Silver Linings Playbook" stars Bradley Cooper, Jennifer Lawrence and Robert De Niro in a quirky romance involving a man fresh out of a psychiatric hospital and an emotionally troubled young widow.

Keira Knightley's period drama "Anna Karenina" also started well in limited release with $315,395 in 16 theaters, for an average of $19,712. The Focus Features film stars Knightley in the title role of Leo Tolstoy's tragic romance.

Estimated ticket sales for Friday through Sunday at U.S. and Canadian theaters, according to Hollywood.com. Where available, latest international numbers also are included. Final domestic figures will be released Monday.

1. "The Twilight Saga: Breaking Dawn — Part 2," $141.3 million ($199.6 million international).

2. "Skyfall," $41.5 million ($49.6 million international).

3. "Lincoln," $21 million.

4. "Wreck-It Ralph," $18.3 million ($4.8 million international).

5. "Flight," $8.6 million ($1 million international).

6. "Argo," $4.1 million.

7. "Taken 2," $2.1 million ($2 million international).

8. "Pitch Perfect," $1.3 million ($4.1 million international).

9. "Here Comes the Boom," $1.2 million.

10 (tie). "Cloud Atlas," $900,000.

10 (tie). "Hotel Transylvania," $900,000.

10 (tie). "The Sessions," $900,000.

___

Online:

http://www.hollywood.com

http://www.rentrak.com

___

Universal and Focus are owned by NBC Universal, a unit of Comcast Corp.; Sony, Columbia, Sony Screen Gems and Sony Pictures Classics are units of Sony Corp.; Paramount is owned by Viacom Inc.; Disney, Pixar and Marvel are owned by The Walt Disney Co.; Miramax is owned by Filmyard Holdings LLC; 20th Century Fox and Fox Searchlight are owned by News Corp.; Warner Bros. and New Line are units of Time Warner Inc.; MGM is owned by a group of former creditors including Highland Capital, Anchorage Advisors and Carl Icahn; Lionsgate is owned by Lions Gate Entertainment Corp.; IFC is owned by AMC Networks Inc.; Rogue is owned by Relativity Media LLC.

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A John Lautner-designed home in L.A.

Known for his forward-thinking engineering, architect John Lautner designed the Foster Carling house with a retractable wall of glass separating the outdoor part of the swimming pool from an interior portion in the living room. External steel beams support the hexagonal living space, which is free of internal columns.

Location: 7144 Hockey Trail, Los Angeles 90068

Asking price: $2.995 million

Year built: 1950

House size: Two bedrooms, two bathrooms, 1,999 square feet

Lot size: 16,002 square feet

Features: Redwood planking, raised fireplace, polished concrete floors, built-in furniture, bar, basement, alarm system, carport, skyline views.

About the area: In the third quarter, 86 single-family homes sold in the 90068 ZIP Code at a median price of $930,000, according to DataQuick. That was a 3.8% price increase from the third quarter last year.

Agent: John Galich, Rodeo Realty, (310) 461-0468

—Lauren Beale

To submit a candidate for Home of the Week, send high-resolution color photos on a CD, written permission from the photographer to publish the images and a description of the house to Lauren Beale, Business, Los Angeles Times, 202 W. 1st St., Los Angeles, CA 90012. Send questions to homeoftheweek@latimes.com.

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Two council members assail LAFD over response times

The Los Angeles Fire Department, which has been embroiled in a months-long controversy over response-time data, has failed to move decisively to resolve the problem, two Los Angeles City Council members said Friday.

In a formal motion, council members Eric Garcetti and Mitch Englander demanded that fire officials appear before the full council as soon as possible to explain why the department has not presented specific actions that could be taken to improve response times by rescuers during life-and-death emergencies.

"The department's managers are either unwilling or unable to do their job to reduce response times and make L.A. safer," said Garcetti, who is running for mayor, in a statement.

Battalion Chief Armando Hogan said Fire Chief Brian Cummings would respond to issues regarding the agency's data on Tuesday at LAFD headquarters, after a regularly scheduled meeting of the Fire Commission.

Friday's comments by the council members were some of the most critical to date about Cummings and his department since the data controversy erupted in March. That's when the LAFD acknowledged it was using response time figures that made it appear that rescuers were reaching victims in need faster than they actually were.

The motion comes after a series of Times investigations on delays in processing 911 calls, dispatching rescuers and summoning the nearest firefighters from other jurisdictions in medical emergencies.

On Thursday, The Times reported that waits for medical aid vary dramatically across Los Angeles' diverse neighborhoods. Residents in some of the city's most exclusive hillside communities can wait twice as long for rescuers to arrive as people who live in densely packed areas in and around downtown, according to the analysis that mapped out more than 1 million LAFD dispatches since 2007.

A task force of experts formed by Cummings has found that inaccurate response time data were a result of systemic problems in the LAFD's 30-year-old computer-assisted dispatch system and a lack of training by LAFD personnel who were assigned to complex data analysis projects.

Earlier this year, Garcetti and other council members asked the LAFD to return with a five-year plan laying out what is needed to improve response times. The council members wanted specifics regarding technology, more firefighters and other resources.

"Six months later, we have bupkis, and that's unacceptable," said Garcetti's spokesman, Yusef Robb.

robert.lopez@latimes.com

kate.linthicum@latimes.com

ben.welsh@latimes.com

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Lady Gaga tweets some racy images before concert

BUENOS AIRES, Argentina (AP) — Lady Gaga's tweets were getting a lot of attention ahead of her Buenos Aires concert Friday night.

The Grammy-winning entertainer has more than 30 million followers on Twitter and that's where she shared a link this week to a short video showing her doing a striptease and fooling around in a bathtub with two other women.

She told her followers that it's a "surprise for you, almost ready for you to TASTE."

Then, in between concerts in Brazil and Argentina, she posted a picture Thursday on her Twitter page showing her wallowing in her underwear and impossibly high heels on top of the remains of what appears to be a strawberry shortcake.

"The real CAKE isn't HAVING what you want, it's DOING what you want," she tweeted.

Lady Gaga wore decidedly unglamorous baggy jeans and a blouse outside her Buenos Aires hotel Thursday as three burly bodyguards kept her fans at bay. Another pre-concert media event where she was supposed to be given "guest of honor" status by the city government Friday afternoon was cancelled.

After Argentina, she is scheduled to perform in Santiago, Chile; Lima, Peru; and Asuncion, Paraguay, before taking her "Born This Way Ball" tour to Africa, Europe and North America.

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