HPE: Fiscal 1Q18 Financial Results

Quarterly revenue for HPE for storage only
(in $ million)

	1FQ17	4FQ17	1FQ18
Storage revenue	764	905	948
*Q/Q growth*	-6%	3%	5%

Hewlett Packard Enterprise LP (HPE) announced financial results for its fiscal 2018 first quarter, ended January 31, 2018.

As the entire company is rebounding under the new leadership of CEO Antonio Neri replacing Meg Whitman effective February 1, 2018, storage is now going well.

Y/Y storage revenue was up 24%, and 23% when adjusted for currency, but without Nimble Storage in the quarter one year ago. The percentage is 11% apple-to-apple.

Q/Q growth is 5%, better than 3% in 4FQ17. It was much more, 21%, in 3FQ17.

Storage sales were $948 million for the most recent period representing 15% of total revenue of the company ($7.7 billion, up 11% from the prior-year period) to be compared to 13% the former quarter.

The growth was driven by the Nimble acquisition in March 2017 for more than one billion of dollars and improved 3Par performance, not the other traditional businesses.

The company is also betting on InfoSight, which came to HPE from Nimble, now across its entire converged and all-flash storage portfolio. It is a predictive analytics platform that uses software-defined intelligence to predict and prevent infrastructure problems before they happen.

Company’s execs said all-flash array revenue increased 16% year-over-year (not as much as NetApp with up to 50% Y/Y during its published last quarter.)

Hyper-converged infrastructure sales grew more than 200% over last year, tanks this time to the acquisition SimpliVity in January 2017.

Since several years, HPE invents nothing, being obliged to buy other companies for a total of more than $4 billion since 2010 to update its storage portfolio.

Tim Stonesifer, CFO, commented: “Revenue in Europe was even stronger, up 11% in constant currency, driven by an acceleration in core compute and storage with double-digit growth in Germany and Scandinavia.“

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

Fiscal quarter	Revenue	Q/Q Growth
1Q13	833	-12%
2Q13	857	3%
3Q13	833	-3%
4Q13	952	14%
1Q14	834	-12%
2Q14	808	-3%
3Q14	796	-1%
4Q14	878	10%
1Q15	837	-5%
2Q15	740	-12%
3Q15	784	6%
4Q15	905	3%
1Q16	863	3%
2Q16	752	-13%
3Q16	763	1%
4Q16	779	8%
1Q17	730	-6%
2Q17	699	-4%
3Q17	844	21%
4Q17	871	3%
FQ17	3,144	*3% Y/Y*
1FQ18	948	5%

* During these more recent periods, HPE has changed the spectrum of its storage business. We have kept the initial figures.

To read the earnings call transcript