HPE: Fiscal 3Q20 Financial Results

HPE revenue for storage only
(in $ million)

Hewlett Packard Enterprise Development LP announced financial results for its fiscal 2020 third quarter ended June 31, 2020.

Global revenue reach $6.8 billion, up 13% Q/Q, down 6% Y/Y.

Remember that, the former quarter was the worst one in storage since several years, down 18% Y/Y and 13% Q/Q at $1,086 million.

This time, sales were $1,128 million, up 4% Q/Q, and down 10% Y/Y or 9% when adjusted for currency, with 12.9% operating profit margin, compared to 16.5% from the prior-year period. They decline for 3 quarters in a row.

Revenue grew 4% sequentially driven by:

• improved operational execution and reduction of backlog,
• big data storage, which is built on IP from MapR acquisition to enable real-time analytics for mission critical, growing 9% Q/Q and 33% Y/Y driven by increased customer focus on AI/ML related applications, while Nimble distributed HCI, new hyper-converged solution for business-critical applications and mixed overloads of scale, grew yearly revenue at 112%,
• expanded adoption of AFA as Primera ramped up growing revenue 114% Y/Y and adding 104 new logos, with nearly one-quarter of those being new to HP storage.

Operating profit margin in storage represented 12.9%, pts being -0.5 Q/Q and -3.6 Y/Y.

Storage represented 16% of global revenue in 3FQ20 and 26% of non-GAAP operating profit ($145 million)

President and CEO Antonio Neri commented: “We continue to strengthen our core capabilities in storage and compute, which are essential resources to store and process customers’ data. Every 60s, we ship 46TB of storage in 4 servers. Despite the challenging market that impacted our storage performance overall, in Q3, we saw sequential improvement of 4%, and importantly, we gained traction and grew in key areas of investment.”

For FY20, storage revenue will be much lower, probably less than 10% than in FY19.

Revenue for HPE storage since FY17
(in $ million)

* HPE changes its accounting results in 1FQ20.

Earnings call transcript