HPE: Fiscal 1Q20 Financial Results

Hewlett Packard Enterprise Development LP announced financial results for its fiscal 2020 first quarter ended January 31, 2020.

Its storage business (hardware, software ans OS) is currently a $5 billion business, according to the company, with an operating margin of 18%.

HPE revenue for storage only (in $ million)

While overall sales declined for the quarter, primarily due to compute business, the firm grew ARR by 19% and saw profitable growth in areas of investment, including intelligent edge, HPC, hyperconverged infrastructure, big storage and operational services orders.

Storage at $1.250 million for the most recent 3-month period, representing 18% of total sales, was down 8% Y/Y and flat Q/Q, with 18% operating margin, decreasing 60 basis points from the prior-year period.

HPE storage revenue

Big data storage grew 45% Y/Y with MapR acquisition. HCI also continued to grow up 6% Y/Y for the quarter. HPE InfoSight, firm’s cloud-based AI operations platform gained momentum across storage and compute.

Effective at the beginning of 1FQ20, HPE replaced its hybrid IT reportable segment (and the compute, storage and Pointnext business units within it) with 4 new financial reporting segments: compute, HPC and mission-critical systems, storage, and advisory and profession services.

Revenue for HPE storage since FY17 (in $ million)

* HPE changes its accounting results in 1FQ20.

To read the earnings call transcript