HP: Fiscal 4Q14 Financial Results

For FY14 ended October 31, 2014, revenue of HP in storage products reached $3.3 billion, down 5% from FY13 and decreasing rapidly since three years (see table below).

For the most recent quarter, Q/Q growth is 10% at $878 million but down 8% from one year ago (see other table below).

The market continued to shift towards mid-tier from the high-end. Fortunately there is the 3par platform, which grew year-over-year and the company expects to gain share as the market moves to the mid-range.

More precisely into storage sales diminishing 8% Y/Y for the last quarter, revenue for converged products was down 3% at $396 million and 12% for traditional products at $482 million. For FY14, the percentages are respectively -5% for the global activity, 8% for converged and -13% for traditional products.

3par plus XP, plus EVA revenue declined yearly 6% for the most recent three-month period.

Commenting on these global bad results, Cathie Lesjak, HP’s CFO, said, as expected: “We need to improve sales execution in storage.”

Furthermore, technology services revenue declined 3% year-over-year, driven by hardware declines in BCS and storage.

Annual revenue for storage only
(without services, in $ million)

Quarterly revenue for storage only
(without services, in $ million)