HP: Fiscal 2Q13 Financial Results

Storage down 13%, all big firms stagnant or plunging, what's happening?
This is a Press Release edited by on 2013.05.24

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                   Storage products only
             (without software and services)

(in $ million) 2Q12
6 mo. 12  6 mo. 13
 Revenues 990 857 1,945    1,690
 Growth     -13% 


HP announced financial results for its second fiscal quarter ended April 30, 2013.

In its Enterprise Group, storage revenue declined 13% Y/Y at $857 million in 2Q13. It's the same declining percentage for the first six months of the fiscal year. But quarterly sales increased 3%.

During its last three-month period, HP was successful in converged storage and midrange 3Par recently launched. Converged storage products were up 48% year-over-year and, within that, 3Par was up 82%. 3par has now exceeded the $1 billion run-rate revenue mark.

But it didn't compensate the HP's traditional portfolio, which this quarter included steep declines in storage networking, tape and media, driving an overall decline in storage.

CFO Catherine Lesjak commented:" We need to better manage the declines of traditional storage, but are excited about the ramp and the positive partner and customer feedback we are getting around our converged storage products."

To read the earnings call transcript

Here is the storage revenue
of the mentors of the industry
for their most recent financial quarters:

 Dell*   473   424  -10%
 EMC  2,455  2,481    1%
 HDS  1,135  1,146    1%
 HP   990   857  -13%
 IBM   736   651  -11%
 NetApp*  1,703  1,717    1%
 Total  7,492  7,276  -3%

* Quarter ended April 2013, March 2013 for the others

What's happening in storage? We don't remember such a bad quarter for all storage giants in market increasing regularly. The big companies are not growing anymore and several of them are rapidly declining. For how long?

They absolutely need to accelerate their innovations and to propose them rapidly to evolve from their current traditional portfolio to compete against aggressive storage start-ups and some mid-range firms, in hardware as well as in software.