HPE today reported sales of $28.9 billion (–4.7 percent) in the fiscal 2017 and $7.7 billion (+4.6 percent) in Q4 fiscal 2017.
HPE generated enterprise group revenue of $6.9 billion (flat) with 5 percent drop in server revenue, 5 percent increase in storage revenue, 21 percent increase in networking revenue and 2 percent increase in technology services revenue. HPE said its financial services revenue rose 24 percent to $1 billion.
“With strong top line revenue growth, earnings above our previous outlook and our second consecutive quarter of sequential margin improvement, our fourth quarter results are a reflection of the progress we have made over the past two years to transform HPE into a nimble, focused and innovative organization,” said Meg Whitman, CEO of HPE.
TBR analyst Stephanie Long said portfolio shifts, including the finalization of spin-merges and a series of strategic acquisitions position the vendor well for long-term gains.
The appointment of Antonio Neri as the replacement of Meg Whitman, who spent six years as CEO, will result in some strategy changes.
Acquisitions, including that of Nimble Storage are increasing the US-based technology vendor’s strong presence in markets such as AI. As HPE invests to modernize its portfolio, a key focal point is on long-term relevance, and investments in these emerging solutions is a key way to ensure long-term viability in a rapidly evolving enterprise IT market.