HPE: Fiscal 4FQ19 Financial Results

HPE revenue for storage only
(in $ million)

	4FQ18	3FQ19	4FQ19	FY18	FY19
Storage revenue	959	844	848	3,706	3,609
*Q/Q growth*	8%	-12%	0%	NA	-3% Y/Y

Hewlett Packard Enterprise Development LP announced financial results for its fiscal 2019 and the fourth quarter, ended October 31, 2019.

Global revenue of $7.2 billion, stable for the last 3 quarters, is down 9% from the prior-year period.

Hybrid IT 4FQ19
Hpe 4q19

Composable cloud is up 21% Y/Y and hyperconverged infrastructure shows momentum, up 14% yearly when adjusted for currency.

Storage was flat on a sequential basis with pricing stable.

Among all the top 7 biggest WW storage companies, 5 of them saw revenue declining for their last known fiscal year: Micron (-33%), WD (-20%), Seagate (-7%), IBM (-26%) and here HPE (-3%) – 2 other ones being NetApp (+4%) and Dell (7%).

It confirms a pause in the WW storage industry having difficulties to find breakthrough innovations, the latest ones being SSDs but with price declining, and AFAs (based on SSDs) beginning to stabilize after encountering huge success but with too many competitors.

Within storage, HPE is making strides in the entry level and mid-range storage markets with strength in Nimble.

Nimble storage was up 2% Y/Y and HPE Pointnext operational services orders and Nimble services orders were flat Y/Y when adjusted for currency.

Against a tougher market backdrop, storage experienced a revenue decline of 3% for FY19. However, the company continued momentum in Nimble reported record revenues, up 35% in constant currency for the year.

Hyperconverged infrastructure, which will be reported in storage starting next quarter, grew at 14%.

Services intensity reached record levels in value compute and storage, which were both up over 20% Y/Y.

Oil and Natural Gas Corporation, a state-owned enterprise of India has selected HPE’s storage technology paired with HPE GreenLake to help them manage their critical data with consumption-based services.

Once more, at the end of 1FQ19, HPE said it expects storage revenue to ramp targeting $1 billion per quarter. Current trend is far to satisfy that hope.

Revenue for HP storage since FY17
(in $ million)

Fiscal quarter	Revenue	Q/Q Growth	Y/Y growth
FY17	3,280		3%
1Q18	948	5%
2Q18	912	-4%
3Q18	887	-3%
4Q18	959	6%
FY18	3,706		*13%*
1Q19	975	3%
2Q19	942	-3%
3Q19	844	-10%
4Q19	848	0%
FY19	3,609		*-3%*

To read the earnings call transcript