HPE: Fiscal 2Q20 Financial Results

HPE revenue for storage only (in $ million)

	2FQ19	1FQ20	2FQ20	6 mo. 2019	6 mo. 2020
Storage revenue	1,318	1,250	1,086	2,674	2,336
*Q/Q growth*	-3%	-13%	-18%		-13%
Earnings before tax	244	226	145	498	371

Global net revenue of $6.0 billion was down 16% from the prior-year period with $834 million loss, these results being heavily impacted by the Covid-19 crisis.

Storage revenue was $1.086 billion, down 18% Y/Y and 13% Q/Q (with 13.4% operating profit margin). These percentages are the worst ones since at least 3 years.

Hpe

Revenue in the quarter was pressured primarily by component shortages and supply chain disruptions related to the Covid-19 pandemic that impacted firm’s ability to fulfill customer demand.

But big data showed continued momentum, up 61% Y/Y when adjusted for currency and Nimble Services revenue grew yearly 20% with services intensity at record highs as customers added high-margin value-added services.

Services intensity, which is the ratio of attach revenue per hardware unit sold, continued to be strong with double-digit growth in storage and HPC, MCS services driven by Cray.

Following this bad financial results, the base salaries of CEO Antonio Neri, and of each executive officer at EVP level, will be reduced by 25%, and the base salary of each executive officer at SVP level will be reduced by 20%.

Revenue for HPE 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%*
1Q20*	1,250	-8%
2Q20	1,086	-18%