HPE Reports Fiscal 2020 4th Quarter, Announces Headquarters Moving to Houston

December 2, 2020

SAN JOSE, Calif., Dec. 2, 2020 — Hewlett Packard Enterprise has announced financial results for the fourth quarter, ended October 31, 2020.

Q4 2020 Financial Highlights:

  • Revenue: returned to pre-pandemic levels of $7.2 billion, up 6% from the prior quarter and flat from the prior-year period
  • Significant acceleration in growth businesses and strong as-a-service momentum
    • HPC & MCS revenue: $975 million, up 50% from the prior quarter and 25% from the prior-year period
    • Intelligent Edge revenue: $786 million, up 15% from the prior quarter and 6% from the prior-year period
    • Annualized revenue run-rate (ARR): $585 million, up 11% from the prior quarter and 30% from the prior-year period
  • Diluted net earnings per share:
    • GAAP of $0.12, above the previously provided outlook of $0.02 to $0.06 per share
    • Non-GAAP of $0.37, above the previously provided outlook of $0.32 to $0.36 per share
  • Dividend: declared a regular cash dividend of $0.12 per share, payable on January 6, 2021

Outlook:

  • Fiscal 2021 First quarter: Estimates GAAP diluted net earnings per share to be in the range of $0.02 to $0.06 and non-GAAP diluted net EPS to be in the range of $0.40 to $0.44
  • Fiscal 2021 earnings per share: Raises GAAP diluted net earnings per share outlook to $0.38 to $0.56 and non-GAAP diluted net earnings per share outlook to $1.60 to $1.78
  • Fiscal 2021 free cash flow: Reiterates free cash flow guidance of $0.9 to $1.1 billion

“Hewlett Packard Enterprise finished the year with a very strong performance,” said Antonio Neri, president and CEO of Hewlett Packard Enterprise. “In Q4 we saw a notable rebound in our overall revenue, with particular acceleration in key growth areas of our business.”

“The global pandemic has forced businesses to rethink everything from remote work and collaboration to business continuity and data insight,” he continued. “Over the last several months, customers have increasingly turned to HPE for our unique capabilities from edge to cloud that help them empower their workforces, deploy resilient new IT solutions and extract insights from critical data, while consuming these solutions more flexibly as a service.”

“Our focused strategy and disciplined execution are delivering results,” said Tarek Robbiati, EVP and CFO of Hewlett Packard Enterprise. “Based on the strong finish to FY20 and increased confidence in profitability going into Q1, we are raising our FY21 EPS guidance.”

Fourth Quarter Fiscal Year 2020 Results

Net revenue of $7.2 billion, flat from the prior-year period. Revenue grew 6% sequentially or 5% when adjusted for currency to pre-pandemic levels as our growth businesses of HPC & MCS and Intelligent Edge executed strongly.

Annualized revenue run-rate (ARR) of $585 million, up 30% from the prior-year period. Based on strong customer demand and recent wins, we are reiterating our 2019 Securities Analyst Meeting ARR guidance of 30-40% Compounded Annual Growth Rate from fiscal year 2019 to fiscal year 2022.

GAAP gross margins of 30.6%, down 260 basis points from the prior-year period and Non-GAAP of 30.6%, down 270 basis points from the prior-year period.

GAAP diluted net earnings per share (“EPS”) was $0.12, compared to $0.36 in the prior-year period and above the previously provided outlook of $0.02 to $0.06 per share.

Non-GAAP diluted net EPS was $0.37, compared to $0.49 in the prior-year period and above the previously provided outlook of $0.32 to $0.36 per share. Fourth quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $329 million and $0.25 per diluted share, respectively, primarily related to transformation costs and amortization of purchased intangible assets.

Cash flow from operations of $747 million, down $685 million from the prior-year period.

Free cash flow of $223 million, down $655 million from the prior-year period and in-line with our guidance.

Segment Results

  • Intelligent Edge revenue was $786 million, up 6% year over year or 5% when adjusted for currency, with 10.1% operating profit margin, compared to 6.2% from the prior-year period. Revenue grew 15% sequentially or 14% when adjusted for currency. Intelligent Edge best-in-class portfolio was recognized as a leader for the 15th year in the Gartner Magic Quadrant for wired and WLAN access infrastructure. The Company also expects to take share in both campus switching and WLAN.
  • High Performance Compute & Mission Critical Systems (HPC & MCS) revenue was $975 million, up 25% year over year, with 12.2% operating profit margin, compared to 10.2% from the prior-year period. Revenue grew 50% sequentially driven by strong performance in Cray, HPC-Apollo and MCS.
  • Compute revenue was $3.2 billion, down 5% year over year or down 4% when adjusted for currency, with 6.1% operating profit margin, compared to 13.9% from the prior-year period. Revenue was down 6% sequentially or 7% when adjusted for currency but was up low single-digits when adjusted for backlog conversion.
  • Storage revenue was $1.2 billion, down 3% year over year, with 16.7% operating profit margin, compared to 17.4% from the prior-year period. Revenue grew 8% sequentially or 7% when adjusted for currency driven by strong operational execution, reduction of backlog and momentum in key areas of the portfolio.
  • Advisory & Professional Services (A&PS) revenue was $245 million, down 9% year over year or 10% when adjusted for currency, with (0.4%) operating profit margin, compared to 0.4% from the prior-year period. Revenue was up 8% sequentially or 6% when adjusted for currency even as COVID-19 impacted consulting activities and chargeability levels of our team members. A&PS is a strategic business that pulls through significant infrastructure and operational services sales.
  • Financial Services revenue was $849 million, down 3% year over year or 4% when adjusted for currency. Revenue grew 5% sequentially or 2% when adjusted for currency, with 7.7% operating profit margin, compared to 8.4% from the prior-year period. Net portfolio assets were up 2% year over year and flat sequentially. Financing volume was down 6% year over year and up 8% sequentially or up 6% when adjusted for currency despite the impact of COVID-19. The business delivered return on equity of 12.6%, down 2.7 points from the prior-year period.

Relocating Headquarters

HPE has made the decision to relocate its headquarters from San Jose, California, to Houston, Texas. HPE’s largest U.S. employment hub, Houston is an attractive market to recruit and retain future diverse talent, and is where the company is currently constructing a state-of-the-art new campus. The Bay Area will continue to be a strategic hub for HPE innovation, and the company will consolidate a number of sites in the Bay Area to its San Jose campus. No layoffs are associated with this move.

Dividend

Board of Directors have declared a regular cash dividend of $0.12 per share on the company’s common stock. This dividend, the first in Hewlett Packard Enterprise’s fiscal year 2021, is payable on January 6, 2021, to stockholders of record as of the close of business on December 9, 2020.

Fiscal 2021 first quarter outlook:

Hewlett Packard Enterprise estimates GAAP diluted net EPS to be in the range of $0.02 to $0.06 and non-GAAP diluted net EPS to be in the range of $0.40 to $0.44. Fiscal 2021 first quarter non-GAAP diluted net EPS estimates exclude after-tax costs of approximately $0.38 per diluted share, primarily related to transformation costs, stock-based compensation and the amortization of intangible assets.

Fiscal 2021 outlook:

Hewlett Packard Enterprise raises GAAP diluted net earnings per share outlook to $0.38 to $0.56 from $0.34 to $0.54 and non-GAAP diluted net earnings per share outlook to $1.60 to $1.78 from $1.56 to $1.76. Fiscal 2021 non-GAAP diluted net EPS estimates exclude after-tax costs of approximately $1.22 per diluted share, primarily related to transformation costs, stock-based compensation and the amortization of intangible assets.

Reiterates free cash flow guidance range of $0.9 to $1.1 billion.

About Hewlett Packard Enterprise

Hewlett Packard Enterprise is a global edge-to-cloud platform-as-a-service company that helps organizations accelerate outcomes by unlocking value from all of their data, everywhere. Built on decades of reimagining the future and innovating to advance the way we live and work, HPE delivers unique, open and intelligent technology solutions, with a consistent experience across all clouds and edges, to help customers develop new business models, engage in new ways, and increase operational performance. For more information, visit: www.hpe.com.

More info and full report: https://investors.hpe.com/~/media/Files/H/HP-Enterprise-IR/documents/q4-2020/q4-2020-quarterly-results.pdf


Source: HPE

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!

Nvidia Rolls Out Certified Server Program Targeting AI Applications

January 26, 2021

Nvidia today launched a certified systems program in which participating vendors can offer Nvidia-certified servers with up to eight A100 GPUs. Separate support contracts directly from Nvidia for the certified systems ar Read more…

By John Russell

XSEDE Supercomputers Square Off Against Ebola

January 26, 2021

COVID-19 may have dominated headlines and occupied much of the world’s scientific computing capacity over the last year, but many researchers continued their work to keep other deadly viruses at bay. One of those, Ebol Read more…

By Oliver Peckham

What’s New in HPC Research: Galaxies, Fugaku, Electron Microscopes & More

January 25, 2021

In this regular 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

Red Hat’s Disruption of CentOS Unleashes Storm of Dissent

January 22, 2021

Five weeks after angering much of the CentOS Linux developer community by unveiling controversial changes to the no-cost CentOS operating system, Red Hat has unveiled alternatives for affected users that give them severa Read more…

By Todd R. Weiss

China Unveils First 7nm Chip: Big Island

January 22, 2021

Shanghai Tianshu Zhaoxin Semiconductor Co. is claiming China’s first 7-nanometer chip, described as a leading-edge, general-purpose cloud computing chip based on a proprietary GPU architecture. Dubbed “Big Island Read more…

By George Leopold

AWS Solution Channel

Fire Dynamics Simulation CFD workflow on AWS

Modeling fires is key for many industries, from the design of new buildings, defining evacuation procedures for trains, planes and ships, and even the spread of wildfires. Read more…

HiPEAC Keynote: In-Memory Computing Steps Closer to Practical Reality

January 21, 2021

Pursuit of in-memory computing has long been an active area with recent progress showing promise. Just how in-memory computing works, how close it is to practical application, and what are some of the key opportunities a Read more…

By John Russell

Nvidia Rolls Out Certified Server Program Targeting AI Applications

January 26, 2021

Nvidia today launched a certified systems program in which participating vendors can offer Nvidia-certified servers with up to eight A100 GPUs. Separate support Read more…

By John Russell

Red Hat’s Disruption of CentOS Unleashes Storm of Dissent

January 22, 2021

Five weeks after angering much of the CentOS Linux developer community by unveiling controversial changes to the no-cost CentOS operating system, Red Hat has un Read more…

By Todd R. Weiss

HiPEAC Keynote: In-Memory Computing Steps Closer to Practical Reality

January 21, 2021

Pursuit of in-memory computing has long been an active area with recent progress showing promise. Just how in-memory computing works, how close it is to practic Read more…

By John Russell

HiPEAC’s Vision for a New Cyber Era, a ‘Continuum of Computing’

January 21, 2021

Earlier this week (Jan. 19), HiPEAC — the European Network on High Performance and Embedded Architecture and Compilation — published the 8th edition of the HiPEAC Vision, detailing an increasingly interconnected computing landscape where complex tasks are carried out across multiple... Read more…

By Tiffany Trader

Saudi Aramco Unveils Dammam 7, Its New Top Ten Supercomputer

January 21, 2021

By revenue, oil and gas giant Saudi Aramco is one of the largest companies in the world, and it has historically employed commensurate amounts of supercomputing Read more…

By Oliver Peckham

President-elect Biden Taps Eric Lander and Deep Team on Science Policy

January 19, 2021

Last Friday U.S. President-elect Joe Biden named The Broad Institute founding director and president Eric Lander as his science advisor and as director of the Office of Science and Technology Policy. Lander, 63, is a mathematician by training and distinguished life sciences... Read more…

By John Russell

Pat Gelsinger Returns to Intel as CEO

January 14, 2021

The Intel board of directors has appointed a new CEO. Intel alum Pat Gelsinger is leaving his post as CEO of VMware to rejoin the company that he parted ways with 11 years ago. Gelsinger will succeed Bob Swan, who will remain CEO until Feb. 15. Gelsinger previously spent 30 years... Read more…

By Tiffany Trader

Julia Update: Adoption Keeps Climbing; Is It a Python Challenger?

January 13, 2021

The rapid adoption of Julia, the open source, high level programing language with roots at MIT, shows no sign of slowing according to data from Julialang.org. I Read more…

By John Russell

Julia Update: Adoption Keeps Climbing; Is It a Python Challenger?

January 13, 2021

The rapid adoption of Julia, the open source, high level programing language with roots at MIT, shows no sign of slowing according to data from Julialang.org. I Read more…

By John Russell

Esperanto Unveils ML Chip with Nearly 1,100 RISC-V Cores

December 8, 2020

At the RISC-V Summit today, Art Swift, CEO of Esperanto Technologies, announced a new, RISC-V based chip aimed at machine learning and containing nearly 1,100 low-power cores based on the open-source RISC-V architecture. Esperanto Technologies, headquartered in... Read more…

By Oliver Peckham

Azure Scaled to Record 86,400 Cores for Molecular Dynamics

November 20, 2020

A new record for HPC scaling on the public cloud has been achieved on Microsoft Azure. Led by Dr. Jer-Ming Chia, the cloud provider partnered with the Beckman I Read more…

By Oliver Peckham

NICS Unleashes ‘Kraken’ Supercomputer

April 4, 2008

A Cray XT4 supercomputer, dubbed Kraken, is scheduled to come online in mid-summer at the National Institute for Computational Sciences (NICS). The soon-to-be petascale system, and the resulting NICS organization, are the result of an NSF Track II award of $65 million to the University of Tennessee and its partners to provide next-generation supercomputing for the nation's science community. Read more…

Is the Nvidia A100 GPU Performance Worth a Hardware Upgrade?

October 16, 2020

Over the last decade, accelerators have seen an increasing rate of adoption in high-performance computing (HPC) platforms, and in the June 2020 Top500 list, eig Read more…

By Hartwig Anzt, Ahmad Abdelfattah and Jack Dongarra

Aurora’s Troubles Move Frontier into Pole Exascale Position

October 1, 2020

Intel’s 7nm node delay has raised questions about the status of the Aurora supercomputer that was scheduled to be stood up at Argonne National Laboratory next year. Aurora was in the running to be the United States’ first exascale supercomputer although it was on a contemporaneous timeline with... Read more…

By Tiffany Trader

10nm, 7nm, 5nm…. Should the Chip Nanometer Metric Be Replaced?

June 1, 2020

The biggest cool factor in server chips is the nanometer. AMD beating Intel to a CPU built on a 7nm process node* – with 5nm and 3nm on the way – has been i Read more…

By Doug Black

Programming the Soon-to-Be World’s Fastest Supercomputer, Frontier

January 5, 2021

What’s it like designing an app for the world’s fastest supercomputer, set to come online in the United States in 2021? The University of Delaware’s Sunita Chandrasekaran is leading an elite international team in just that task. Chandrasekaran, assistant professor of computer and information sciences, recently was named... Read more…

By Tracey Bryant

Leading Solution Providers

Contributors

Top500: Fugaku Keeps Crown, Nvidia’s Selene Climbs to #5

November 16, 2020

With the publication of the 56th Top500 list today from SC20's virtual proceedings, Japan's Fugaku supercomputer – now fully deployed – notches another win, Read more…

By Tiffany Trader

Texas A&M Announces Flagship ‘Grace’ Supercomputer

November 9, 2020

Texas A&M University has announced its next flagship system: Grace. The new supercomputer, named for legendary programming pioneer Grace Hopper, is replacing the Ada system (itself named for mathematician Ada Lovelace) as the primary workhorse for Texas A&M’s High Performance Research Computing (HPRC). Read more…

By Oliver Peckham

At Oak Ridge, ‘End of Life’ Sometimes Isn’t

October 31, 2020

Sometimes, the old dog actually does go live on a farm. HPC systems are often cursed with short lifespans, as they are continually supplanted by the latest and Read more…

By Oliver Peckham

Gordon Bell Special Prize Goes to Massive SARS-CoV-2 Simulations

November 19, 2020

2020 has proven a harrowing year – but it has produced remarkable heroes. To that end, this year, the Association for Computing Machinery (ACM) introduced the Read more…

By Oliver Peckham

Nvidia and EuroHPC Team for Four Supercomputers, Including Massive ‘Leonardo’ System

October 15, 2020

The EuroHPC Joint Undertaking (JU) serves as Europe’s concerted supercomputing play, currently comprising 32 member states and billions of euros in funding. I Read more…

By Oliver Peckham

Intel Xe-HP GPU Deployed for Aurora Exascale Development

November 17, 2020

At SC20, Intel announced that it is making its Xe-HP high performance discrete GPUs available to early access developers. Notably, the new chips have been deplo Read more…

By Tiffany Trader

Nvidia-Arm Deal a Boon for RISC-V?

October 26, 2020

The $40 billion blockbuster acquisition deal that will bring chipmaker Arm into the Nvidia corporate family could provide a boost for the competing RISC-V architecture. As regulators in the U.S., China and the European Union begin scrutinizing the impact of the blockbuster deal on semiconductor industry competition and innovation, the deal has at the very least... Read more…

By George Leopold

HPE, AMD and EuroHPC Partner for Pre-Exascale LUMI Supercomputer

October 21, 2020

Not even a week after Nvidia announced that it would be providing hardware for the first four of the eight planned EuroHPC systems, HPE and AMD are announcing a Read more…

By Oliver Peckham

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