Hewlett Packard Enterprise (HPE) announced financial results for the first quarter, ended January 31, 2022.
HPE reported revenue of $7.0 billion, down 5 percent sequentially and up 2 percent from the prior-year period which is in-line with normal sequential seasonality.
HPE reported gross margins of 33.7 percent, up 80 basis points sequentially and 20 basis points from the prior-year period.
Segment Results
Intelligent Edge revenue rose 11 percent to $901 million. Aruba Services revenue was up double-digits from the prior-year period and Intelligent Edge as-a-Service ARR was up strong double-digits from the prior-year period.
High Performance Computing & Artificial Intelligence (HPC & AI) revenue grew 4 percent to $790 million. The slight operating loss was driven by delayed customer acceptances and supply chain constraints.
Compute revenue increased 1 percent to $3 billion, with 13.8 percent operating profit margin against 11.4 percent from the prior-year period. Margin expansion was driven by strategic pricing actions more than offsetting rising input costs.
Storage revenue fell 3 percent to $1.2 billion, with 14.5 percent operating profit margin, compared to 19.6 percent from the prior-year period reflecting supply chain constraints, particularly in HPE-owned IP offerings.
Financial Services revenue dropped 2 percent to $842 million, with 12.4 percent operating profit margin, compared to 9.8 percent from the prior-year period.
