Hewlett Packard Enterprise (NYSE: HPE) announced financial results for the first quarter, ended January 31, 2021.
Revenue: $6.8 billion exceeded Q1 outlook with stronger than normal sequential seasonality
• Intelligent Edge revenue: $806 million, up 11% from the prior-year period when adjusted for currency
• Annualized revenue run-rate (ARR): $649 million, up 27% from the prior-year period
• Core businesses delivered strong profitability and cash flow
Net revenue of $6.8 billion, down 2% from the prior-year period or 3% when adjusted for currency, marked by stronger than normal sequential seasonality.
Intelligent Edge revenue was $806 million, up 12% year over year or 11% when adjusted for currency, with 18.9% operating profit margin, compared to 12.1% from the prior-year period.
Rich software capabilities combined with greater operational productivity helped accelerate revenue and profits. Based on the solid performance, the Company expects to continue to take share in both campus switching and WLAN.
High Performance Compute & Mission Critical Systems (HPC & MCS) revenue was $762 million, down 9% year over year, with 5.6% operating profit margin, compared to 7.5% from the prioryear period. Despite inherent uneven nature of the business, the Company remains confident in the near-term and longer-term outlook for this business.
Compute revenue was $3.0 billion, down 1% year over year or down 2% when adjusted for currency, with 11.5% operating profit margin, compared to 10.7% from the prior-year period.
Storage revenue was $1.2 billion, down 5% year over year or down 6% when adjusted for currency, with 19.7% operating profit margin, compared to 20.0% from the prior-year period.
Notable strength in software-defined solutions, including Nimble, up 31% from the prior-year period when adjusted for currency and All Flash Array Storage, up 5% from the prior-year period, driven by increased adoption of Primera All Flash.
Financial Services revenue was $860 million, flat year over year or down 1% when adjusted for currency, with 9.8% operating profit margin, compared to 8.7% from the prior-year period. Net portfolio assets were up 3% year over year or flat when adjusted for currency. The business delivered return on equity of 16.5%, up 1.3 points from the prior-year period.
Source: https://investors.hpe.com/
