HPE: Fiscal 2Q22 Financial Results

(in $ million)	2FQ21	2FQ22	6 mo. 2021	6 mo. 2022
Revenue for storage only	1,136	1,098	2,328	2,254
*Growth*		*-3%*		*-3%*
Earnings before taxes	191	138	425	306

Hewlett Packard Enterprise Development LP announced financial results for the for the second quarter, ended April 30, 2022.

Global revenue reached $6.7 billion, up 0.2% from the prior-year period in line with outlook and the company reiterates FY22 revenue growth of 3%-4% adjusted for currency;

Hpe Fiscal 2q22 Financial Results F1

Storage revenue was $1.1 billion, down 3% from the prior-year period with 12.6% operating profit margin, compared to 16.8% from the prior-year period reflecting higher supply chain costs and unfavorable mix shift. It’s the lowest figure since 2FQ20.

The decline was also 3% Y/Y from the former quarter.

Storage sales represent 16% of global revenue.

With respect to storage, there is a mix between own IP product and third-party product that has been unfavorable, meaning that there were more third-party product revenues and on IP revenue. This has had a detrimental impact to gross margins for storage.

Storage backlog increased to record levels, led as-a-service ARR growth among segments.

Revenue for HPE storage since FY17
(in $ million)

Fiscal quarter	Revenue	Q/Q Growth	Y/Y growth
FY17	3,280		3%
FY18	3,706		*13%*
1Q19	975	3%
2Q19	942	-3%
3Q19	844	-10%
4Q19	848	0%
FY19	3,609		-3%
1Q20*	1,250	-8%
2Q20	1,086	-18%
3Q20	1,128	-10%
4FQ20	1,217	8%
FY20	4,681		-10%
1FQ21	1,193	-2%
2FQ21	1,137	-5%
3FQ21	1,176	4%
4FQ21	1,257	3%
FY21	4,763		2%
1FQ22	1,156	-8%
2FQ22	1,098	-3%

* HPE changes its accounting results in 1FQ20.

Earnings call transcript