HPE Announces Its Financial Results for the First Quarter of 2019

February 21, 2019

SAN JOSE, Calif., Feb. 21, 2019 – Hewlett Packard Enterprise (NYSE: HPE) today announced financial results for its fiscal 2019 first quarter, ended January 31, 2019.

“Today we reported another strong quarter for Hewlett Packard Enterprise as we continue to execute against our strategy of growing in the Intelligent Edge and delivering profitable growth in Hybrid IT,” said Antonio Neri, President and CEO of HPE. “We significantly expanded both gross and operating margins and drove 31% growth in non-GAAP earnings per share. Looking forward, we are confident that HPE’s differentiated, software-defined solutions will continue to gain traction with customers looking to harness the explosion of data, driving accelerated revenue growth starting in Q2.”

First Quarter Fiscal Year 2019

  HPE fiscal 2019 first quarter continuing operations financial performance

  Q1 FY19 Q1 FY18 Y/Y
GAAP net revenue ($B) $7.6 $7.7 (1.6%)
GAAP operating margin 6.0% 3.0% 3.0 pts.
GAAP net earnings ($B) $0.2 $1.5 (88.1%)
GAAP diluted net earnings per share $0.13 $0.92 (85.9%)
Non-GAAP operating margin 8.9% 7.3% 1.6 pts.
Non-GAAP net earnings ($B) $0.6 $0.5 13.5%
Non-GAAP diluted net earnings per share $0.42 $0.32 31.3%
Cash flow from operations ($M) $382 $142 169%


Information about HPE’s use of non-GAAP financial information is provided under “Use of non-GAAP financial information” below.

Financial Summary

First quarter net revenue of $7.6 billion, in-line with guidance, down 2% from the prior-year period, and down 1% when adjusted for currency. First quarter net revenue was up 1% from the prior-year period, excluding Tier-1 server sales.

First quarter GAAP operating profit of $456 million, up 100% from the prior-year period.


First quarter non-GAAP operating profit of $669 million, up 19% from the prior-year period driven by 280 bps of gross margin expansion and cost reductions from HPE Next.

First quarter GAAP diluted net earnings per share (“EPS”) from continuing operations was $0.13, down from GAAP diluted net EPS from continuing operations of $0.92 in the prior-year period primarily due to one-time, non-cash adjustments related to U.S. tax reform.

First quarter non-GAAP diluted net EPS from continuing operations was $0.42, up from non-GAAP diluted net EPS from continuing operations of $0.32 in the prior-year period. First quarter non-GAAP net earnings from continuing operations and non-GAAP diluted net EPS from continuing operations exclude after-tax adjustments of $413 million and $0.29 per diluted share, respectively, primarily related to the impact of U.S. tax reform, tax indemnification adjustments, transformation costs, amortization of intangible assets, acquisition, disposition and other related charges and an adjustment to earnings from equity interests.

First quarter cash flow from operations of $382 million and free cash flow of ($190) million, was up $240 million and $222 million from the prior-year period, respectively.

Segment Results

HPE delivered strong performance in the key areas of the portfolio. 

 

  • Intelligent Edge delivered robust growth in this strategically important segment. Revenue was $686 million, up 5% year over year, with 1.3% operating margin. HPE Aruba Product revenue was up 3% with balanced growth across wired and WLAN. HPE Aruba Services revenue was up 20%. 
  • Hybrid IT continued to drive profit growth with revenue of $6.0 billion, down 3% year over year with 11.3% operating margin that was up 200 bps year over year. Compute revenue was down 3%. Excluding the impact from the company’s intentional exit of certain Tier-1 customer segments, Compute revenue grew 3% and HPE’s high-margin Value Compute portfolio grew approximately 20% driven by strength in high-performance compute, hyper-converged and composable. Storage revenue was up 3%, with particular strength in All-Flash Arrays, which grew 20%. HPE Pointnext revenue was down 6%, primarily due to the company’s intentional exit of certain geographies, and a strong book to bill of 110% indicates a strong pipeline of recurring revenue and profits.
  • Financial Services revenue was $919 million, up 3% year over year and up 6% when adjusted for currency, net portfolio assets were down 2% year over year and up 2% when adjusted for currency, and financing volume was down 3% year over year and flat when adjusted for currency. The business delivered an operating margin of 8.4%.

Raised FY 2019 Outlook

For the fiscal 2019 second quarter, Hewlett Packard Enterprise estimates GAAP diluted net EPS to be in the range of $0.19 to $0.23 and non-GAAP diluted net EPS to be in the range of $0.34 to $0.38. Fiscal 2019 second quarter non-GAAP diluted net EPS estimates exclude after-tax costs of approximately $0.15 per diluted share, primarily related to transformation costs and the amortization of intangible assets.

For fiscal 2019 full-year, Hewlett Packard Enterprise now estimates GAAP diluted net EPS to be in the range of $0.88 to $0.98 and the non-GAAP diluted net EPS to be in the range of $1.56 to $1.66. Fiscal 2019 non-GAAP diluted net EPS estimates exclude after-tax costs of approximately $0.68 per diluted share, primarily related to transformation costs, the amortization of intangible assets, and an adjustment to earnings from equity interests.

For fiscal 2019 full-year, Hewlett Packard Enterprise reiterates free cash flow guidance range of $1.4 to $1.6 billion, up over 35% from the prior year.

About Hewlett Packard Enterprise

Hewlett Packard Enterprise is a global technology leader focused on developing intelligent solutions that allow customers to capture, analyze and act upon data seamlessly from edge to cloud. HPE enables customers to accelerate business outcomes by driving new business models, creating new customer and employee experiences, and increasing operational efficiency today and into the future.


Source: Hewlett Packard Enterprise

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

GTC 2019: Chief Scientist Bill Dally Provides Glimpse into Nvidia Research Engine

March 22, 2019

Amid the frenzy of GTC this week – Nvidia’s annual conference showcasing all things GPU (and now AI) – William Dally, chief scientist and SVP of research, provided a brief but insightful portrait of Nvidia’s rese Read more…

By John Russell

ORNL Helps Identify Challenges of Extremely Heterogeneous Architectures

March 21, 2019

Exponential growth in classical computing over the last two decades has produced hardware and software that support lightning-fast processing speeds, but advancements are topping out as computing architectures reach thei Read more…

By Laurie Varma

Interview with 2019 Person to Watch Jim Keller

March 21, 2019

On the heels of Intel's reaffirmation that it will deliver the first U.S. exascale computer in 2021, which will feature the company's new Intel Xe architecture, we bring you our interview with our 2019 Person to Watch Jim Keller, head of the Silicon Engineering Group at Intel. Read more…

By HPCwire Editorial Team

HPE Extreme Performance Solutions

HPE and Intel® Omni-Path Architecture: How to Power a Cloud

Learn how HPE and Intel® Omni-Path Architecture provide critical infrastructure for leading Nordic HPC provider’s HPCFLOW cloud service.

powercloud_blog.jpgFor decades, HPE has been at the forefront of high-performance computing, and we’ve powered some of the fastest and most robust supercomputers in the world. Read more…

IBM Accelerated Insights

Insurance: Where’s the Risk?

Insurers are facing extreme competitive challenges in their core businesses. Property and Casualty (P&C) and Life and Health (L&H) firms alike are highly impacted by the ongoing globalization, increasing regulation, and digital transformation of their client bases. Read more…

What’s New in HPC Research: TensorFlow, Buddy Compression, Intel Optane & More

March 20, 2019

In this bimonthly feature, HPCwire highlights newly published research in the high-performance computing community and related domains. From parallel programming to exascale to quantum computing, the details are here. Read more…

By Oliver Peckham

GTC 2019: Chief Scientist Bill Dally Provides Glimpse into Nvidia Research Engine

March 22, 2019

Amid the frenzy of GTC this week – Nvidia’s annual conference showcasing all things GPU (and now AI) – William Dally, chief scientist and SVP of research, Read more…

By John Russell

At GTC: Nvidia Expands Scope of Its AI and Datacenter Ecosystem

March 19, 2019

In the high-stakes race to provide the AI life-cycle solution of choice, three of the biggest horses in the field are IBM, Intel and Nvidia. While the latter is only a fraction of the size of its two bigger rivals, and has been in business for only a fraction of the time, Nvidia continues to impress with an expanding array of new GPU-based hardware, software, robotics, partnerships and... Read more…

By Doug Black

Nvidia Debuts Clara AI Toolkit with Pre-Trained Models for Radiology Use

March 19, 2019

AI’s push into healthcare got a boost yesterday with Nvidia’s release of the Clara Deploy AI toolkit which includes 13 pre-trained models for use in radiolo Read more…

By John Russell

It’s Official: Aurora on Track to Be First US Exascale Computer in 2021

March 18, 2019

The U.S. Department of Energy along with Intel and Cray confirmed today that an Intel/Cray supercomputer, "Aurora," capable of sustained performance of one exaf Read more…

By Tiffany Trader

Why Nvidia Bought Mellanox: ‘Future Datacenters Will Be…Like High Performance Computers’

March 14, 2019

“Future datacenters of all kinds will be built like high performance computers,” said Nvidia CEO Jensen Huang during a phone briefing on Monday after Nvidia revealed scooping up the high performance networking company Mellanox for $6.9 billion. Read more…

By Tiffany Trader

Oil and Gas Supercloud Clears Out Remaining Knights Landing Inventory: All 38,000 Wafers

March 13, 2019

The McCloud HPC service being built by Australia’s DownUnder GeoSolutions (DUG) outside Houston is set to become the largest oil and gas cloud in the world th Read more…

By Tiffany Trader

Quick Take: Trump’s 2020 Budget Spares DoE-funded HPC but Slams NSF and NIH

March 12, 2019

U.S. President Donald Trump’s 2020 budget request, released yesterday, proposes deep cuts in many science programs but seems to spare HPC funding by the Depar Read more…

By John Russell

Nvidia Wins Mellanox Stakes for $6.9 Billion

March 11, 2019

The long-rumored acquisition of Mellanox came to fruition this morning with GPU chipmaker Nvidia’s announcement that it has purchased the high-performance net Read more…

By Doug Black

Quantum Computing Will Never Work

November 27, 2018

Amid the gush of money and enthusiastic predictions being thrown at quantum computing comes a proposed cold shower in the form of an essay by physicist Mikhail Read more…

By John Russell

The Case Against ‘The Case Against Quantum Computing’

January 9, 2019

It’s not easy to be a physicist. Richard Feynman (basically the Jimi Hendrix of physicists) once said: “The first principle is that you must not fool yourse Read more…

By Ben Criger

ClusterVision in Bankruptcy, Fate Uncertain

February 13, 2019

ClusterVision, European HPC specialists that have built and installed over 20 Top500-ranked systems in their nearly 17-year history, appear to be in the midst o Read more…

By Tiffany Trader

Intel Reportedly in $6B Bid for Mellanox

January 30, 2019

The latest rumors and reports around an acquisition of Mellanox focus on Intel, which has reportedly offered a $6 billion bid for the high performance interconn Read more…

By Doug Black

Why Nvidia Bought Mellanox: ‘Future Datacenters Will Be…Like High Performance Computers’

March 14, 2019

“Future datacenters of all kinds will be built like high performance computers,” said Nvidia CEO Jensen Huang during a phone briefing on Monday after Nvidia revealed scooping up the high performance networking company Mellanox for $6.9 billion. Read more…

By Tiffany Trader

Looking for Light Reading? NSF-backed ‘Comic Books’ Tackle Quantum Computing

January 28, 2019

Still baffled by quantum computing? How about turning to comic books (graphic novels for the well-read among you) for some clarity and a little humor on QC. The Read more…

By John Russell

Contract Signed for New Finnish Supercomputer

December 13, 2018

After the official contract signing yesterday, configuration details were made public for the new BullSequana system that the Finnish IT Center for Science (CSC Read more…

By Tiffany Trader

Deep500: ETH Researchers Introduce New Deep Learning Benchmark for HPC

February 5, 2019

ETH researchers have developed a new deep learning benchmarking environment – Deep500 – they say is “the first distributed and reproducible benchmarking s Read more…

By John Russell

Leading Solution Providers

SC 18 Virtual Booth Video Tour

Advania @ SC18 AMD @ SC18
ASRock Rack @ SC18
DDN Storage @ SC18
HPE @ SC18
IBM @ SC18
Lenovo @ SC18 Mellanox Technologies @ SC18
NVIDIA @ SC18
One Stop Systems @ SC18
Oracle @ SC18 Panasas @ SC18
Supermicro @ SC18 SUSE @ SC18 TYAN @ SC18
Verne Global @ SC18

It’s Official: Aurora on Track to Be First US Exascale Computer in 2021

March 18, 2019

The U.S. Department of Energy along with Intel and Cray confirmed today that an Intel/Cray supercomputer, "Aurora," capable of sustained performance of one exaf Read more…

By Tiffany Trader

IBM Quantum Update: Q System One Launch, New Collaborators, and QC Center Plans

January 10, 2019

IBM made three significant quantum computing announcements at CES this week. One was introduction of IBM Q System One; it’s really the integration of IBM’s Read more…

By John Russell

IBM Bets $2B Seeking 1000X AI Hardware Performance Boost

February 7, 2019

For now, AI systems are mostly machine learning-based and “narrow” – powerful as they are by today's standards, they're limited to performing a few, narro Read more…

By Doug Black

The Deep500 – Researchers Tackle an HPC Benchmark for Deep Learning

January 7, 2019

How do you know if an HPC system, particularly a larger-scale system, is well-suited for deep learning workloads? Today, that’s not an easy question to answer Read more…

By John Russell

HPC Reflections and (Mostly Hopeful) Predictions

December 19, 2018

So much ‘spaghetti’ gets tossed on walls by the technology community (vendors and researchers) to see what sticks that it is often difficult to peer through Read more…

By John Russell

Arm Unveils Neoverse N1 Platform with up to 128-Cores

February 20, 2019

Following on its Neoverse roadmap announcement last October, Arm today revealed its next-gen Neoverse microarchitecture with compute and throughput-optimized si Read more…

By Tiffany Trader

Move Over Lustre & Spectrum Scale – Here Comes BeeGFS?

November 26, 2018

Is BeeGFS – the parallel file system with European roots – on a path to compete with Lustre and Spectrum Scale worldwide in HPC environments? Frank Herold Read more…

By John Russell

France to Deploy AI-Focused Supercomputer: Jean Zay

January 22, 2019

HPE announced today that it won the contract to build a supercomputer that will drive France’s AI and HPC efforts. The computer will be part of GENCI, the Fre Read more…

By Tiffany Trader

  • arrow
  • Click Here for More Headlines
  • arrow
Do NOT follow this link or you will be banned from the site!
Share This