HPE: Fiscal 2Q19 Financial Results

HPE revenue for storage only
(in $ million)

Hewlett Packard Enterprise Development LP announced financial results for its fiscal 2019 second quarter, ended April 30, 2019.

Second quarter global net revenue of $7.2 billion is down 4% from the prior-year period.

Storage revenue was up 3% Y/Y and -3% Q/Q, with particular strength in Nimble, XP and entry storage.

Good results as for all other storage companies in HCI and AFAs, respectively up Y/Y 25% and 45% for Nimble Storage.

HPE Pointnext revenue was down yearly 7% year. Its operational services orders, including Nimble services, was up 1% when adjusted for currency.

We don’t understand quite well why the company stated in its earnings call: “Storage revenue was up 5% year-over-year, which marks our eighth consecutive quarter of growth,” as these figures do not correspond to its published financial figures.

At the end of last quarter, HPE said it expects storage revenue to ramp targeting $1 billion per quarter. Current trend is not going to satisfy that hope on short term.

If you look at the storage results of the biggest storage giants (see below), all of them record lower storage quarterly sales but Dell (+19%), with Pure Storage down as much as 33%, IBM 10%, HPE and NetApp 3%.

Quarterly revenue for HP storage
(in $ million)

Several times for the former quarters, HPE then announced storage revenue slightly different than before for unknown reasons, especially during FY18. Consequently the assessment of the company that storage marks the eighth consecutive quarter of growth in 2FQ19 is not confirmed by this table.

Most recent financial quarter results in storage

To read the earnings call transcript