Hewlett Packard Enterprise: Fiscal 1Q16 Financial Results

Hewlett Packard Enterprise (HPE) announced financial results for its fiscal 2016 first quarter, ended January 31, 2016.

Storage revenue, representing 11% of enterprise group, is officially down 3% and up 3% Y/Y in constant currency for the quarter.

Problem here is that since the separation between Hewlett Packard Enterprise and HP, Inc., the former figures have been modified. For example, storage was announced at $837 million for 1FQ15, now it’s $562 million for the same period. Depending on these two figures, HP storage is increasing yearly 3% or 54%!

In the table below, we keep the former figures announced by Hewlett-Packard and not by the new HPE as we thing that a 54% growth is quite fanciful.

Storage is at $863 million in the most recent quarter, representing a small growth (3% to 6%) during the last nine months, but is much lower that the $952 million recorded in 4FQ13.

Inside storage, quarterly converged revenue represents $452 million, up 9% Y/Y, and traditional revenue $358 million, down 15% Y/Y.

3PAR continues doing well. “We had record revenue for 3PAR, driven by triple-digit constant currency growth in all-flash, which grew at three times the market rates. With the industry-leading all flash product and the broadest reach through our channel, we expect to gain share for the ninth quarter in a row in calendar Q4,” commented president and CEO Margaret Whitman.

“The unified 3PAR architecture combined with our excellent channel partnerships continues to drive revenue growth and share gains, while our competitors are distracted and contracting. 3PAR all-flash grew triple digits again, driving 3PAR revenue growth of 21% year-over-year in constant currency, significantly outperforming the market. 3PAR plus XP plus EVA was up 15% year-over-year in constant currency,” added  CFO Tim Stonesifer.

During the conference call, Whitman revealed
the arrival of two important products later this month:

• a new market-changing hyper-converged offering based on ProLiant virtualization server. The new solution will offer customers installation in minutes, “a consumer-inspired simple mobile array user experience, and automated IT operations, all at 20% lower cost than Nutanix.” HPE believes this new system will allow the company to become a top player in the $5 billion high-growth hyper-converged market.
• HPE will refresh its server portfolio to include a new non-volatile technology called Persistent Memory, which was invented by its server group, enabling an ecosystem of new applications supporting non-volatile memory.

Quarterly revenue for HP storage only
(without services, in $ million)

To read the earnings call transcript