HP: Fiscal 3Q14 Financial Results

(in $ million)	3Q13	3Q14	9 mo. 13	9 mo. 14
Storage revenue	833	796	2,523	2,438
*Growth*		-4%		*-3%*

For the third fiscal quarter ended July 31, 2014, HP’s enterprise group revenue was up 2% year over year with a 14% operating margin.

Industry standard servers sales was up 9%, storage revenue down 4%, business critical systems revenue down 18%, networking revenue up 4% and technology services revenue down 3%.

Storage once more is decreasing Q/Q, by only 1%, but being under $800 million historically for the first time. It’s the fifth consecutive quarter HP’s storage is going down.

Into storage, converged revenue reached $364 million, up 9% Y/Y, and traditional revenue of $432 million decreased 14%.

Storage represented 12% of the enterprise group business for the quarter.

“3Par returned to double digit growth, and we continue to gain share in the mid-range. As the market shift increasingly from high end to mid-range, it is pressuring overall market growth but I believe this plays into a sweet spot for HP, which bodes well for us in the long term,” commented president and CEO Meg Whitman.

CFO Cathie Lesjak added: “While 3Par plus XP plus EVA revenue declined 7% year-over-year, we expect another quarter of share gain in the external disk market overall in calendar 2Q14.”

To read the earnings call transcript

Revenue for storage only
(without services, $ million)