HPE: Fiscal 4Q20 Financial Results

HPE revenue for storage only
(in $ million)

Hewlett Packard Enterprise Development LP announced financial results for the fourth quarter ended October 31, 2020.

It returned to pre-pandemic levels of $7.2 billion in global revenue, up 6% Q/Q, and flat Y/Y.

Representing 17% of total revenue, storage was $1.2 billion, down 3% Y/Y and up 8% Q/Q after decreasing for 3 consecutive quarters, with 16.7% operating profit margin, compared to 17.4% from the prior-year period, an improvement of 380 basis points sequentially

Storage revenue grew 8% sequentially or 7% when adjusted for currency driven by strong operational execution, reduction of backlog and momentum in key areas of firm’s portfolio, with 32% non-GAAP operating profit at $203 million. It’s down 3% Y/Y.

For storage only

Big data grew 29% Y/Y driven by increased customer focus on AI and ML. This business had its sixth consecutive quarter of growth up 41% Y/Y and HCI ,where Nimble DHCI solution gain share, growing yearly 280%. But for services intensity, which is the ratio of attach revenue per hardware units sold, Nimble were up low-single digits growth on a sequential basis.

AFA grew 19% Q/Q thanks to high-end Primera All-Flash.

By region, Americas represented 36%, EMEA 41% and AsiaPac 23%.

For FY20, storage reached $4,681 million or once more 17% of global revenue with non-GAAP operating profit at $719 million.

Revenue for HPE storage since FY17
(in $ million)

* HPE changes its accounting results in 1FQ20.

Earnings call transcript