HPE: Fiscal 2Q17 Financial Results

Hewlett Packard Enterprise Development LP (HPE) announced  financial results for its fiscal 2017 second quarter, ended April 30, 2017.

Storage revenue at $699 million for the period is the worst figure since at least 1FQ13, , down 4% Q/Q and 13% Y/Y, representing 11% of total enterprise group sales, down 7% in a tough market with continued commodities pricing pressure. For the last six months, the decrease reaches 13% Y/Y in storage.

But all-flash sales are growing 33% for the quarter thanks to the acquisitions of SimpliVity and Nimble Storage. But we don’t see the effect of another acquisition, SGI, also involved in storage.

Abstracts of the earnings call transcript:
Tim Stonesifer, CFO:
“Storage revenue declined 13% driven by continued challenging markets and tight SSD supplies. However, we do expect to maintain share in the high-growth all-flash portion of the market. Our all-flash array growth accelerated this quarter and was up 33% year-over-year and results were still meaningfully impacted by SSD supply constraints.
” (…) from a converged perspective, I think the converged part of the portfolio was down roughly 8% and traditional was down roughly 20% and then from a material perspective, really the supply constraints are much more around SSD and again as that market is very tight right now, we’re getting our fair share of supplies, but given the complexity of our broad product portfolio, we’re finding it challenging to what we call demand shift.”

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

Quarterly revenue for HP storage only since 1FQ13
(without services, in $ million)