HP: Fiscal 1Q12 Financial Results

       
Storage products only
   
(without software and services)

HP announced financial results for its first fiscal quarter ended January 31, 2012.

For the same three months (see yesterday’s news), Dell’ storage revenues were up 9% sequentially and down 13% year to year. It’s not better for HP, down 12% and 6% respectively for the same two periods.

HDD shortage had a big impact for HP, representing more than half of global revenues’ decline for its most recent quarter.

Margaret Whitman, HP’s president and CEO, comments: "3PAR delivered another terrific quarter; but in our broader storage business, we’re still working through a product transition."

Catherine Lesjak, CFO, said: "Neither the storage nor BCS [Business Critical Server] results were dramatically impacted by the hard disk drive shortage. However, we did see a significant impact on Industry Standard Server revenue, which declined 11% year-over-year. The hard disk drive shortage caused a mismatch between supply and demand, so we had demand that we could not meet in the quarter."

"Turning to the Enterprise Servers, Storage and Networking business. Revenue declined 10% year-over-year to $5 billion due to the impact from the hard disk drive shortage and the continued weakness in BCS," she added. "Storage revenue was down 6% year-over-year despite double-digit growth in StoreOnce and nearly 100% growth in 3PAR. Year-over-year declines in our base and EVA product lines offset this growth."

Her opinion concerning next quarter: "In Q2, there will be an impact to revenue due to the hard disk drive shortage, although we expect the impact will be smaller in Q2 than Q1 based on the drives to which we have line of sight.

To read the earnings call transcript