HPE: Fiscal 3Q17 Financial Results

Hewlett Packard Enterprise Development LP (HPE) announced  financial results for its fiscal 2017 third quarter, ended July 31, 2017.

Storage revenue at $844 million for the period is the best figure since 2FQ16, up 21% Q/Q and 11% Y/Y, representing 12% of total enterprise group sales at $6.8 billion, up 3% Y/Y. For the last nine months, the decrease reaches 6% Y/Y in storage.

Trended EG revenue bridges – adjusted for divestitures and currency (1) (2)
(1) Revenue adjusted to exclude amounts for the H3C divestiture.
Revenue adjusted to eliminate the impact of currency
(2) Amounts may not add due to rounding

The acquisition of SimpliVity and Nimble Storage begin to make effects but is offset by continued challenging markets. During the quarter, all-flash storage grew 30% yearly driven by Nimble acquired in March, which exceeded both revenue and profit plans for the most recent three-month period even if there’s plenty of competition from traditional rivals like Dell Technologies’ EMC unit, NetApp as well as younger flash pioneers like Pure Storage .

HPE continues to expect NAND supply constraints through the end of the year but said that they have started to moderate.

The firm is also seeing good traction in hyperconverged technology that grew triple digits.

But 3PAR revenue declined 9% explained by a very competitive pricing environment for this kind of storage subsystems, particularly in USA.

Last fiscal year, the IT company realizes $3,235 billion sales in storage, up 2% from FY15 but this figure will be difficult but not impossible to reach for the current 12-month period, as it means a quarterly increase of 14% from 3FQ17.

Quarterly revenue for HP end then HPE for storage only
(in $ million)

Quarterly revenue for HP and then HPE for storage only since 1FQ13
(in $ million)

To read the earnings call transcript