HPE: Fiscal 2Q18 Financial Results

HPE revenue for storage only
(in $ million)

	2FQ17	1FQ18	2FQ18	6 mo. 2017	6 mo. 2018
Storage revenue	734	948	912	1,498	1,860
*Q/Q growth*	-4%	5%	-4%	Y/Y growth	24%

Hewlett Packard Enterprise LP (HPE) announced financial results for its fiscal 2018 second quarter ended April 30, 2018.

Global second quarter net revenue of $7.5 billion was up 10% from the prior year.

Hybrid IT revenue records $6.0 billion, up 7% year over year and up 4% when adjusted for currency, with a 10.3% operating margin.

Compute revenue was up 6%, up 2% when adjusted for currency, storage revenue was up 24% with the Nimble acquisition, up 22% when adjusted for currency, and up 14% organically.

For the last six-month period, storage growth is reaching an astonishing 24% from 2017 to 2018 after years of tiny growth or decreasing revenue.

But after three quarters of sequentially growth, the firm is back to lower storage sales at -4%.

All-flash business grew 20% year-over-year and the company benefits from its strong position with 3PAR and Nimble, double-digit growth in converged storage driven by Nimble and big data storage that has become a meaningful part of vendor’s portfolio.

CEO Antonio Neri commented: “While the overall storage market remains competitive, we like our current position and expect to take nearly 50 basis points of share this quarter, which will be the 10th time in the last 12 quarters, where we’ve gained or maintained share.”

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%
FY17	3,144	*3% Y/Y*
1F18	948	5%
2F18	912	*-4%*

To read the earnings call transcript