HPE: Fiscal 4Q21 Financial Results

HPE revenue for storage only

Hewlett Packard Enterprise Development LP announced financial results for fiscal year 2021 and the fourth quarter, ended October 31, 2021.

Global revenue reached $27.8 billion in 4QF21, up 3% Y/Y.

Storage sales are slightly increasing. They were $1.257 million for the quarter, up 3% from 3FQ21 or up 2% when adjusted for currency, and up 7% Q/Q (ahead of normal sequential seasonality, driven by strong growth in software-defined offerings), with 13.8% operating profit margin (driven by traditional mix and Opex investments) compared to 18.2% in 3FQ21.

For fiscal year, revenue was 4,763 million up 2% Y/Y, to be compared to -10% from FY19 to FY20.

Storage business represented 17% of total revenue for 4FQ21 as well as for FY21.

AFAs grew 7% in 4FQ21 from 3FQ21 led by Primera, up double-digits. Notable strength in software-defined solutions, including Nimble, up 4%, with strong momentum in dHCI growing double-digits.

Storage operating profit margin was 13.8% for the more recent quarter, reflecting Opex investments to continue driving product mix shift towards more software-rich platforms, including cloud data services.

With respect to Pointnext operational services, including Nimble services, orders accelerated and were up high single digits in 4FQ21 and up mid-single digits for FY21 with operating margin of 16.3%. Revenue grew in FY21, the first time since 2 years.

The company commented: “We are making bold moves to transform our storage business into a cloud-native data services business, which resulted in a high single-digit order growth and gross margin expansion, up 130 basis points year-over-year.”

Revenue for HPE storage since FY17
(in $ million)

* HPE changes its accounting results in 1FQ20.

Earnings call transcript