HP: Fiscal 4Q13 Financial Results

Hewlett-Packard Development Company, LP announced the financial results for its fiscal fourth quarter (4Q13) and for the year ended October 31, 2013.

The company never records such a sequential increase (14%) in storage revenue since at least 2Q09 (see below), with sales at $952 million in its most recent quarter to be compared to $833 million for the former three-month period.

Is it HP’s revival after two years of annual storage sales decreasing, -9% in 2013, -6% in 2012, following a better 2011 period (+7%)?. We will have to wait for the next months to confirm an eventual new trend as quarterly sales are up only 1% Y/Y.

The real success comes essentially from 3par subsystems – with revenue growing 64% Y/Y and once more with a record quarter -, no more on EVA and XP, and also converged storage with product revenue up 47% over the prior year.

Sometime in the first half of FY14, HP expects that converged solutions will be more than 50% of storage, and that will allow the company to continue to accelerate growth in storage base.

Revenue declines moderated in traditional storage driven by higher storage networking attach and sales of refreshed entry products.

In the its Enterprise Group, HP saw revenue growth of 2%, the first time the company has grown revenue in eight quarters with strong Hyperscale quarter and stabilization in blades, complemented by revenue growth in networking and storage.

Revenue for storage only
(without services, $ million)