DealBook: Hewlett-Packard Takes Big Hit on ‘Improprieties’ at Autonomy

Hewlett-Packard said on Tuesday that it had taken an $8.8 billion accounting charge, after discovering “serious accounting improprieties” and “outright misrepresentations” at Autonomy, a British software maker that it bought for $10 billion last year.

It is a major setback for H.P., which has been struggling to turn around its operations and remake its business.

The charge essentially wiped out its profit. In the latest quarter, H.P. reported a net loss of $6.9 billion, compared with a $200 million profit in the period a year earlier. The company said the improprieties and misrepresentations took place just before the acquisition, and accounted for the majority of the charges in the quarter, more than $5 billion.

Shares in H.P. plummeted more than 13 percent in early morning trading on Tuesday, to $11.55.

Hewlett-Packard bought Autonomy in the summer of 2011 in an attempt to bolster its presence in the enterprise software market and catch up with rivals like I.B.M. The takeover was the brainchild of Léo Apotheker, H.P.’s chief executive at the time, and was criticized within Silicon Valley as a hugely expensive blunder.

Mr. Apotheker resigned a month later. The management shake-up came about one year after Mark Hurd was forced to step down as the head of H.P. as a result of accusations of sexual harassment.

Since then, H.P. has tried to revive the company and to move past the controversies. Last year, Meg Whitman, a former head of eBay, took over as chief executive and began rethinking the product lineup and global marketing strategy.

But the efforts have been slow to take hold.

In the previous fiscal quarter, the company announced that it would take an $8 billion charge related to its 2008 acquisition of Electronic Data Systems, as well as added costs related to layoffs. Then Ms. Whitman told Wall Street analysts in October that revenue and profit would be significantly lower, adding that it would take several years to complete a turnaround.

“We have much more work to do,” Ms. Whitman said at the time.

Hewlett-Packard continues to face weakness in its core businesses. Revenue for the full fiscal year dropped 5 percent, to $120.4 billion, with the personal computer, printing, enterprise and service businesses all losing ground. Earnings dropped 23 percent, to $8 billion, over the same period.

“As we discussed during our securities analyst meeting last month, fiscal 2012 was the first year in a multiyear journey to turn H.P. around,” Ms. Whitman said in a statement. “We’re starting to see progress in key areas, such as new product releases and customer wins.”

The strategic troubles have weighed on the stock. Shares of H.P. have dropped to about $11 from nearly $30 at their high this year.

The latest developments could present another setback for Ms. Whitman’s efforts.

When the company assessed Autonomy before the acquisitions, the financial results appeared to pass muster. Ms. Whitman said H.P.’s board at the time – which remains the same now, except for the addition of the hedge fund investor Ralph V. Whitworth – relied on Deloitte’s auditing of Autonomy’s financial statements. As part of the due diligence process for the deal, H.P. also hired KPMG to audit Deloitte’s work.

Neither Deloitte nor KPMG caught the accounting discrepancies. Nigel Mercer, the Deloitte accountant listed on Autonomy’s last annual report, did not return calls seeking comment.

Hewlett-Packard said it first began looking into potential accounting problems in the spring, after a senior Autonomy executive came forward. H.P. then hired a third-party forensic accounting firm, PricewaterhouseCoopers, to conduct an investigation.

The company said it discovered several accounting irregularities. For example, H.P. said Autonomy was taking licensing revenue upfront, before receiving the money. It had the effect, the company said, of significantly bolstering Autonomy’s gross margin.

H.P. turned over its findings to Securities and Exchange Commission in the United States and the Serious Fraud Office in Britain with the last week. In a conference call with analysts, Ms. Whitman said the company might consider legal actions against several parties.

The former management team of Autonomy, which includes the company’s founder Mike Lynch, rejected H.P. claims about the accounting issues.

“H.P. has made a series of allegations against some unspecified former members of Autonomy Corporation PLC’s senior management team. The former management team of Autonomy was shocked to see this statement today, and flatly rejects these allegations, which are false,” the group said in a statement. “It took 10 years to build Autonomy’s industry-leading technology and it is sad to see how it has been mismanaged since its acquisition by H.P.”

Read More..

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. 

ALSO:

FHA's reserves fall into the red

California home sales pop in October

Most aid from mortgage settlement in state going to short sales

Follow Jim Puzzanghera on Twitter and Google+.

Read More..

The Legacy of Linus Torvalds: Linux, Git, and One Giant Flamethrower

Linus Torvalds created Linux, which now runs vast swathes of the internet, including Google and Facebook. And he invented Git, software that’s now used by developers across the net to build new applications of all kinds. But that’s not all Torvalds has given the internet.

He’s also started some serious flame wars.

Over the past few years, Torvalds has emerged as one of the most articulate and engaging critics of the technology industry. His funny and plainspoken posts to Google+ routinely generate more comments and attention than most stories on The New York Times — or even Wired.

Linus, you see, has the gift for the geek gab. Some of his gems — “Talk is cheap. Show me the code.” — are the stuff of T-shirt slogans. Others — such his portrait of the hard drive as the new Satan or the F-bomb he dropped on Nvidia, “the single worst company” the Linux developer community has ever dealt with — have a certain knack for keeping marketing people up at night.

Torvalds can say what he wants because — unlike most of the world’s best-known software developers — he doesn’t work for a big technology company with a public relations department. If he worked for IBM or Red Hat, he’d probably be clamped down. But Torvalds is a free operator, his salary paid by the non-profit Linux Foundation. So whenever he needs a break from code-wrangling the Linux project, he fires away on Google+. It’s the same honest attitude that turned Linux into such a success story.

Earlier this year, Torvalds joined luminaries such as Sir Tim Berners-Lee and Van Jacobsen as an inductee to the Internet Society’s (ISOC) Internet Hall of Fame. It only make sense. Today, Linux is not only part of the genetic material of the internet, it powers the millions of Android phones that people use to access it. And GitHub — based on his Git software — has reinvented the art of collaborative software development, not to mention the social network.

But when we told Torvalds that we wanted to profile him in honor of his induction into the Internet Hall of Fame, his other contribution to internet life appeared in all its glory.

At first, he blew us off. Torvalds is entering that middle-aged period of his life where he’s suddenly one of the guys who gets honored in international awards ceremonies. And though he didn’t say so, we got the sense that he wasn’t into pontificating about the role of Linux in the internet.

So we gently trolled him over his use of Google+.

“Why are you the only person of interest on Google+?” we asked, not so innocently.

“Christ, that may be the saddest sentence ever on the internet,” Torvalds fired back. “The fact that I’m not very politically correct (in fact, I find people who get ‘offended’ to be annoying twits), and get grumpy and public about it isn’t all that interesting. I actually think that I’m a rather optimistic and happy person, it’s just that I’m not a very positive person, if you see the difference.

“So I rant a bit on G+ and the comments can be fun to watch (in a sad, sad way), but ‘only person of interest’ means that your editor may want to expand his circles a bit.”

Soon, we’re having a very interesting back-and-forth about people who are easily offended, euthanasia, and a favorite topic: the misdeeds of security industry and security researchers who become famous by uncovering the mistakes that people like Torvalds have missed.

‘The economics of the security world are all horribly horribly nasty, and are largely based on fear, intimidation and blackmail. It’s why I compared them to the TSA — even when you know there are morons that didn’t finish high school and are stealing camera equipment and harassing people with ridiculous rules, you can’t actually speak up against them because there’s no recourse.’

— Linus Torvalds

As you might have guessed, he’s a critic. “[T]hey start off with a sane and obvious premise (‘security is important’) and then push it beyond all recognition (‘security matters more than anything else’), and use fear-mongering as their main way to push their agenda,” he said.

By then, he was on a roll.

“The economics of the security world are all horribly horribly nasty, and are largely based on fear, intimidation and blackmail. It’s why I compared them to the TSA — even when you know there are morons that didn’t finish high school and are stealing camera equipment and harassing people with ridiculous rules, you can’t actually speak up against them because there’s no recourse.”

A serious roll.

“I’m occasionally impressed by the things some of the people do — especially the people finding some really obscure way to take some innocent-looking bug and turn it into an exploit — but then in order to take advantage of their discovery they have to take that really interesting intellectual exercise and turn it into this really sordid affair. It’s either some (very) thinly veiled blackmail behind some ‘best security practices’ bullshit, or it’s a carefully orchestrated PR event with the timing set so that they look important and interesting.”

Then he slammed people like us in the tech press for eating it all up and turning everything into a “big circus.”

It was great.

The thing is, if you ever have the pleasure of meeting Torvalds, he’s not some raging maniac. He’s mild-mannered and friendly. His candor is wonderfully endearing. You might think differently of his slightly grumpy online writings, but they’re really rather insightful, and we think they’re fun too — even if he’s comparing us to clowns.

Pages: 1 2 View All

Read More..

Metal singer Aaron Lewis finds second home in country music

NASHVILLE, Tennessee (Reuters) – Aaron Lewis stands as one of the more unusual crossovers into country music, but the singer of the metal band Staind believes it was a fit made in the cradle.

“It’s been quite the pleasant eclectic mix of tattoos and black eyeliner, and Stetsons, cowboy boots and big shiny buckles,” Lewis said in an interview after the release of his first full-length country studio album, “The Road,” this week.

Lewis, 40, was raised on what he terms his grandfather’s country music: Johnny Cash, Waylon Jennings, Charlie Daniels and George Jones. He collaborated with Daniels and Jones on his country EP, “Town Line,” released last year.

This made the transition from the angst-ridden world of metal to the laid-back country scene an easy step for him, but perhaps not so much for his head-banging fans.

“A few fans are really having a hard time with it,” Lewis said. “I can’t make everyone happy. Music is about making me happy first. For those who wish I would stick with Staind, they’ll get what they want, too.”

Lewis, who sold seven studio albums over a 17-year career with Staind, says he has two musical careers because he is “creatively bipolar” and suffers from attention deficit disorder.

“I need to switch it up a little bit,” he said. “It’s kind of nice to write a song about taking my daughters to the beach instead (of) about something that’s tearing me apart from the inside.”

For Lewis, each song on “The Road” is the opportunity to explore his creativity in music, while winding down a road filled with new country listeners and taking Staind fans along for the ride.

“The Road” includes “Forever,” a thoughtful song of life on the road, and “Endless Summer,” a simple track about digging up clams and casting for striped bass with his daughters.

“If we catch a keeper we throw it on the grill,” he says. “The beauty of the adventure that I’m on now is I can write songs about stuff like that. I could never bring a song like that to the table for Staind.”

He describes writing “Endless Summer” as a “refreshing and a nice change” from his metal past.

“I remember having a big smile on my face the whole time I was writing it,” he said. “In the past, what’s usually coming up for lyrics is not smiley material. The song wrote itself in 10 minutes.”

In contrast, “Party in Hell,” which has fans up and dancing, was the last song Lewis wrote for the album and was inspired by a stint in Las Vegas.

“Las Vegas really is, in a metaphorical sense, a party in hell; you can get into anything you want to,” he said. “It was like well, ‘OK, I’m going to hell, who else is going to be there? We might as well have a party with it.’”

SAME PROCESS

His previous country EP, “Town Line,” featured the gold-selling single “Country Boy,” a collaboration with Daniels and Jones that hit the top of the “Billboard” album charts and topped off at No. 7 on the Top 200.

“That’s crazy, right?” Lewis asks, shaking his head. “It was pretty amazing for me, pretty surreal. I was actually in the studio with Charlie, which was a lot of fun. We have become good friends.”

The writing process for country or rock is the same, according to Lewis.

“The music is always first, then the melody, and the lyrics third,” he said. “I need the music to know what the landscape is that I’m singing over, and I need the melody to fit the words in, and then the words come last.”

But the lyrics do not come while he is writing on a piece of paper. “They come with me standing in front of a microphone with the song playing in the background and singing,” he said. “It’s total improv, right off the cuff.”

As with recording, Lewis does not approach a rock performance differently from a country performance.

“I go out on stage and perform those songs I recorded to the best of my ability to sound just like the recording,” he said. “I have always tried to approach every show like it’s the only show that I have. That’s kind of how I’ve gone about this crazy career I’ve had now coming up on 15 years.”

(Reporting by Vernell Hackett; Editing by Christine Kearney and Lisa Von Ahn)

Music News Headlines – Yahoo! News

Read More..

Novelties: Single-Incision Surgery, Via New Robotic Systems

SURGEONS once made incisions large enough to get to a gallbladder or other organs by using conventional tools they held in their own hands. Today, many sit at a computer console instead, guiding robotic arms that enter the patient’s body through small openings not much larger than keyholes.

But even this minimally invasive surgery usually requires multiple incisions: one for the camera system showing the way to the surgeon at the console, and others for each of the robotic arms that do the cutting and stitching.

Now there are robotic systems — one on the market, others in development — that are even less intrusive. They require only a single, small incision through which the robotic arms and camera enter.

This could lead to faster recovery, said Dr. Michael Hsieh, a Stanford professor and a urologist at Lucile Packard Children’s Hospital and Stanford Hospital. “There’s only one wound to heal with this procedure, rather than three,” he said.

Dr. Hsieh, who performs abdominal surgery on small children, uses minimally invasive techniques that typically now require three incisions. His patients generally go home a day or two after surgery, he said, “but I think they would recover more quickly if I could reduce my multiple incisions to just one,” he said. “And there will be less scarring, or even no scarring, if you enter through the navel.”

He will soon have a chance to try out the new method on his patients. Stanford Hospital is buying a system from Intuitive Surgical called Single-Site that requires only a single incision of about one inch. The system, approved by the Food and Drug Administration only for gallbladder removal, is used as an add-on to a basic robotic system from Intuitive, known as the da Vinci Si.

The Si costs $1.3 million to $2.2 million, said Angela Wonson, a spokeswoman for Intuitive, based in Sunnyvale, Calif. The Single-Site can add $60,000 or more to the bill, or far less, depending in part on the equipment that hospitals might already have.

The East Jefferson General Hospital in Metairie, La., has bought a Single-Site system. Seated at a computer there, Dr. Joseph Uddo Jr. can control the instruments, which can enter the body by way of one incision in the navel. Surgical instruments like scissors are at the ends of the robotic arms. “To change a tool, you take out one instrument and load in another,” he said.

ANOTHER surgical robotic system, now in development, enters the body through a remarkably small incision — six-tenths of an inch, or 15 millimeters. The robot was designed by Drs. Dennis Fowler and Peter Allen of Columbia University and Dr. Nabil Simaan of Vanderbilt University. Once inside the body, it unfolds to reveal a camera system and two snakelike arms that perform the surgery. The system has been licensed to Titan Medical in Toronto.

Minimally invasive surgery through a single incision can also be performed with long, thin laparoscopic tools that surgeons wield as they watch a video monitor. But single-incision laparoscopic surgery with hand-held instruments can have problems, said Dr. Adrian Park, chairman of the department of surgery at the Anne Arundel Medical Center in Annapolis, Md., who specializes in minimally invasive gastrointestinal surgery. One difficulty is its ergonomic challenge to doctors, while another is the pressure that the tools place on tissue during single-incision operations.

Robotic systems, by contrast, are likely to ease single-incision surgery, said Jeffrey J. Tomaszewski, a fellow in urologic oncology at the Fox Chase Cancer Center in Philadelphia.

“Robots are an extension and multiplier of our own surgical hands,” Dr. Tomaszewski said. He has done traditional laparoscopic surgery with hand-held instruments, including operations through a single incision. “But you can be working at constrained angles,” he said. “A robot can improve the angle of workability.”

Robotic systems, though, have yet to show that they are always worth the extra money they cost. Such proof will take time, said Allison Okamura, an associate professor of mechanical engineering at Stanford who directs the Collaborative Haptics and Robotics in Medicine Lab. “The jury is still out because of the longevity of the studies that are required,” she said.

Dr. Tomaszewski agreed. “We surgeons love using the robot,” he said. “But the question is, and what we all have to fight hard to do, is to determine for what procedure the robotic approach provides the best benefit.”

Dr. Hsieh says he hopes that single-site robotic systems will someday bring a benefit he’s long dreamed about.

“We may get to the point where we do outpatient, scarless robotic surgery,” he said. “That’s what I’m shooting for.”

E-mail: novelties@nytimes.com.

Read More..

Bits Blog: Intel Chief Executive to Retire in May

Intel said on Monday that its president and chief executive, Paul S. Otellini, would retire from the company in May, after 40 years with the chip maker. The company said it would prepare to transition to a new leader over the next six months.

Mr. Otellini has served as chief executive for seven years. In a statement, Intel said it credited him for creating a path for long-term growth for the company. It also said he “reinvented the PC” with ultrabook device, the thinner, lighter laptops that have nonetheless failed to gain traction in the computer market.

“I’ve been privileged to lead one of the world’s greatest companies,” Mr. Otellini said in a statement. “After almost four decades with the company and eight years as C.E.O., it’s time to move on and transfer Intel’s helm to a new generation of leadership.”

The chip maker has struggled recently because of the stalled personal computer market. Demand for traditional personal computers has been weak because many consumers are instead choosing mobile alternatives, like smartphones or tablets, as computing devices. Intel has a small footprint in the tablet market.

Read More..

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.

Read More..

Amazing Time-Lapse Video Features Ever-Changing Earth and Sky

.

Heaven meets the Earth in this moving time-lapse video showing gorgeous landscapes underneath an ever-changing night sky.

“Within Two Worlds” was created by photographer Brad Goldpaint. The film features shooting comets, a giant tilting Milky Way, and glowing purple and pink auroras peeking over the horizon. Stunning sequences watch day turn to night and night to day, as overhead stars shine their beautiful light above mountains, forests, and waterfalls.

“This time-lapse video is my visual representation of how the night sky and landscapes co-exist within a world of contradictions. I hope this connection between heaven and earth inspires you to discover and create your own opportunities, to reach your rightful place within two worlds,” Goldpaint wrote on his Vimeo page.

Below you can see some of striking images from the movie, including screenshots of the Geminid meteor shower over Castle Lake in California and auroras over Crater Lake National park in Oregon.

Geminid meteor shower over Castle Lake

The Milky Way soars over Crater Lake as a Lyrid meteor flies overhead.

Star trails over Mount Shasta in California

Pink auroras over Crater Lake

Images and Video: Copyright Goldpaint Photography

Music composed by Serge Essiambre entitled, ‘Believe in Yourself’

Adam is a Wired reporter and freelance journalist. He lives in Oakland, Ca near a lake and enjoys space, physics, and other sciency things.

Read more by Adam Mann

Follow @adamspacemann on Twitter.

Read More..

“Partners” Canceled by CBS

LOS ANGELES (TheWrap.com) – CBS’s freshman comedy “Partners” has been canceled, an individual with knowledge of the situation told TheWrap on Friday.

“Partners,” which starred Michael Urie and David Krumholtz, and centered around the “bromance” between two co-workers, one gay and one straight, premiered September 24 and occupied the Monday at 8:30 slot.

Its most recent episode scored a 1.8 rating/5 share in the advertiser-coveted 18-49 demographic – down 14 percent from the previous week, and its poorest showing to date. While the show had strong network support, it proved to be the weak link in CBS’s Monday night comedy lineup, the rest of which – “2 Broke Girls,” “How Met Your Mother” and “Mike & Molly” – has been on an upward trajectory.

“Partners” was created by “Will & Grace” writers David Kohan and Max Mutchnick and was loosely based on their own lives.

A “Two and a Half Men” repeat will air in the show’s former timeslot next week.

This makes the second cancellation for the network so far this year, following “Made in Jersey.”

TV News Headlines – Yahoo! News

Read More..

The Neediest Cases: Emerging From a Bleak Life to Become Fabulous Phil

For years, Phillip Johnson was caught in what seemed like an endless trench of bad luck. He was fired from a job, experienced intensifying psychological problems, lost his apartment and spent time in homeless shelters. At one point, he was hospitalized after overdosing on an antipsychotic drug.

“I had a rough road,” he said.

Since his hospital stay two years ago, and despite setbacks, Mr. Johnson, 27, has been getting his life on track. At Brooklyn Community Services, where he goes for daily counseling and therapy, everybody knows him as Fabulous Phil.

“Phillip is a light, the way he evokes happiness in other people,” his former caseworker, Teresa O’Brien, said. “Phillip’s character led directly to his nickname.”

About six months ago, with Ms. O’Brien’s help, Mr. Johnson started an event: Fabulous Phil Friday Dance Party Fridays.

One recent afternoon at the agency, 30 clients and a few counselors were eating cake, drinking soft drinks and juice, and grooving for 45 minutes to Jay-Z and Drake pulsating from a boom box.

Mr. Johnson’s voice rose with excitement when he talked about the party. Clients and counselors, he said, “enjoy themselves.”

“They connect more; they communicate more,” he continued. “Everybody is celebrating and laughing.”

The leadership Mr. Johnson now displays seems to be a far cry from the excruciatingly introverted person he was.

As an only child living with his single mother in public housing in Bedford-Stuyvesant, Brooklyn, he said, he tended to isolate himself. “A lot of kids my age would say, ‘Come outside,’ but I would always stay in my room,” he said. He occupied himself by writing comic books or reading them, his favorites being Batman and Spiderman because, he said, “they were heroes who saved the day.”

After graduating from high school in 2003, he worked odd jobs until 2006, when he took a full-time position at a food court at La Guardia Airport, where he helped to clean up. The steady paycheck allowed him to leave his mother’s apartment and rent a room in Queens.

But the depression and bleak moods that had shadowed him throughout middle and high school asserted themselves.

“My thinking got confused,” he said. “Racing thoughts through my mind. Disorganized thoughts. I had a hard time focusing on one thing.”

In 2008, after two years on the job, Mr. Johnson was fired for loud and inappropriate behavior, and for being “unpredictable,” he said. The boss said he needed counseling. He moved back in with his mother, and in 2009 entered a program at an outpatient addiction treatment service, Bridge Back to Life. It was there, he said, that he received a diagnosis of schizophrenia and help with his depression and marijuana use.

But one evening in May 2010, he had a bout with insomnia.

He realized the antipsychotic medication he had been prescribed, Risperdal, made him feel tired, he said, so he took 12 of the pills, rather than his usual dosage of two pills twice a day. When 12 did not work, he took 6 more.

“The next morning when I woke up, it was hard for me to breathe,” he said.

He called an ambulance, which took to Woodhull Hospital. He was released after about a month.

Not long after, he returned to his mother’s apartment, but by February 2011, they both decided he should leave, and he relocated to a homeless shelter in East New York, where, he said, eight other people were crammed into his cubicle and there were “bedbugs, people lying in your bed, breaking into your locker to steal your stuff.”

In late spring 2011, he found a room for rent in Manhattan, but by Thanksgiving he was hospitalized again. Another stint in a shelter followed in April, when his building was sold.

Finally, in July, Mr. Johnson moved to supported housing on Staten Island, where he lives with a roommate. His monthly $900 Social Security disability check is sent to the residence, which deducts $600 for rent and gives him $175 in spending money; he has breakfast and lunch at the Brooklyn agency. To assist Mr. Johnson with unexpected expenses, a grant of $550 through The New York Times Neediest Cases Fund went to buy him a bed and pay a Medicare prescription plan fee for three months.

“I was so happy I have a bed to sleep on,” he said about the replacement for an air mattress. “When I have a long day, I have a bed to lay in, and I feel good about that.”

Mr. Johnson’s goals include getting his driver’s license — “I already have a learner’s permit,” he said, proudly — finishing his program at the agency, and then entering an apprenticeship program to become a plumber, carpenter or mechanic.

But seeing how his peers have benefited from Fabulous Phil Fridays has made him vow to remain involved with people dealing with mental illnesses or substance abuse.

He was asked at the party: Might he be like the comic-book heroes he loves? A smile spread across his face. He seemed to think so.

Read More..