HPE shines in innovation despite 6% drop in revenue 

Hewlett Packard Enterprise (HPE) said revenue fell 6 percent from the prior-year period and grew 13 percent sequentially to $6.8 billion in its fiscal 2020 third quarter that ended July 31, 2020.
HPE revenue in June quarter 2020Antonio Neri, president and CEO of Hewlett Packard Enterprise, has explained the global networking supplier’s main achievements during the quarter despite Covid-19 related impact on its business.

“We improved operational and supply chain execution and advanced our innovation agenda with the introduction of HPE GreenLake cloud services solutions, our new HPE Ezmeral software portfolio, and our planned acquisition of SD-WAN leader Silver Peak,” Antonio Neri said.


# As-a-service annualized revenue run rate of $528 million grew 11 percent
# GreenLake services orders grew 82 percent
# Signed several of largest HPE GreenLake Cloud services deals in history
# HPE ship 46 terabytes of storage in four servers every 60 seconds
# Storage business grew 4 percent sequentially
# Big Data storage revenues grew 31 percent
# Nimble distributed HCI grew 112 percent
# HP Primera storage platform grew revenues 114 percent
# HP Primera gained 104 new logos this quarter

Segment Results

HPE’s Intelligent Edge revenue fell 12 percent to $684 million with 8.6 percent operating profit margin vs 6.8 percent.

HPE’s Compute revenue was flat at $3.4 billion with 8.5 percent operating profit margin vs 12.9 percent.

HPE’s High Performance Compute & Mission Critical Systems (HPC & MCS) revenue grew 3 percent to $649 million with 5.5 percent operating profit margin vs 8.1 percent.

HPE’s Storage revenue fell 10 percent to $1.1 billion with 12.9 percent operating profit margin vs 16.5 percent.

HPE’s Advisory & Professional Services (A&PS) revenue dropped 7 percent to $226 million with –1.8 percent operating profit margin vs –3.7 percent.

HPE’s Financial Services revenue dipped 9 percent to $811 million with 8 percent operating profit margin vs 8.7 percent.

HPE made significant improvements in supply chain execution, reducing backlog by more than $500 million from Q2 historical high exit levels.