UPDATE: H-P Queried By SEC On Exports To Iran, Syria
August 17 2009 - 8:22PM
Dow Jones News
The U.S. Securities and Exchange Commission recently queried
Hewlett-Packard Co. (HPQ) about sales of its products in Iran and
Syria, part of what appears to be a broader inquiry of companies
doing business in countries whose governments the U.S. deems to
sponsor terrorism.
The SEC asked Hewlett-Packard to describe sales of its products
in the countries in a questionnaire sent the Palo Alto, Calif.,
company dated Feb. 10, according to correspondence the agency
released Monday. The watchdog also asked about H-P's business in
Sudan.
In a nine-page response dated March 12, H-P told regulators it
conducted its sales in Iran through a European subsidiary, and
limited products to those authorized for redistribution into Iran
under U.S. regulations. It also said it had received 14 U.S.
Department of Commerce licenses over the last five years to sell
computers, software and related equipment for use by Syrian
telecommunications companies.
News of the inquiry come as the SEC makes public documents sent
to other companies, in which it seeks information about their
business in countries that have troubled relationships with the
U.S. Both Advanced Micro Devices Inc. (AMD) and Intel Corp. (INTC)
were queried about their business ties with a range of countries.
Both companies have said their practices comply with U.S. trade
law.
The U.S. considers Iran, Syria, Sudan and Cuba to be state
sponsors of terrorism, according to the U.S. State Department Web
site. As a result, the nations are subject to various embargoes and
restrictions, including a ban on defense exports and U.S. foreign
assistance.
An H-P spokeswoman termed the correspondence "routine." In a
statement, the company said, "H-P believes that it has fully
complied with the staff's inquiry."
An SEC spokesperson declined to comment on the situation.
However, release of documents of this nature usually indicates an
inquiry has been completed.
The inquiry included a request for information on sales of
printers and printer supplies in Iran. The sales were conducted by
H-P's Dutch subsidiary Hewlett-Packard Europe, B.V., H-P said. The
company provided products to United Arab Emirates-based
distributors Redington Gulf FZE, Almasa IT Distribution FCZO and
Emitac Distribution LLC, according to H-P.
A branch of the Dutch subsidiary has since "taken steps to
terminate existing agreements" with Redington Gulf, as well as some
other distributors, "insofar as they may involve redistribution of
such printers and printer supplies into Iran," H-P told the
regulators.
In the documents, the company didn't say why the business
arrangement had ended. Total printer sales and supplies revenue in
Iran amounted to $120 million in fiscal 2008, less than a percent
of the company's global printer and toner sales.
H-P said it had no agreements or contacts with the governments
of Iran, Syria or the Sudan.
On a day of broad losses, H-P shares fell 2.2% to $43.11
Monday.
-By Ben Charny, Dow Jones Newswires; 415-765-8230;
ben.charny@dowjones.com