HPE ‘s server and storage businesses suffer in early 2020
Despite a turnover approaching $ 7 billion in one quarter, HPE is forced to note an 8% drop in activity in the first quarter of its fiscal year 2020. In question, the poor results of the calculation activity, who lost 15% in one year. While, at the same time, the Greenlake solution increased its revenues by 48%.
With $ 6.9 billion in sales in the first quarter of 2020, HPE is not in poor health. Its Greenlake solution (rental system for HPE systems), for example, increased its revenues by 48%. However, year over year, the IT infrastructure provider’s overall revenues fell 8%. What HPE executives explain by market uncertainty, logistical constraints and production capacity in North America, the impacts of which mainly affected the server activity of the supplier. The latter generated $ 3 billion, down 15%, with an operating margin of 9.5%.
On its other activities, HPE saw a drop in its revenues also in storage and financial services. On the storage side, $ 1.3 billion in sales were generated, down 7%, with an operating margin of 18.1%, down 60 points compared to last year. Note that sales of hyperconverged systems increase by 6% over one year. In addition, financial services revenues were down 6% to $ 859 million.
Only the edge and the growing HPC
Professional and consulting services represent $ 243 million on the comprehensive income, and are stable compared to 2019, with an operating margin of 0.8%, up 12.5 points. The Intelligent Edge division returned to growth with revenue of $ 720 million, up 4% from 2019 after adjusting for currency effects, with an operating margin of 9.7%. “The improvement in the dominant position of sales in North America and the segmentation of the market are bearing fruit with double-digit growth in North America and growth of 13% after currency adjustment for all WLAN products” , HPE notes in a press release. Finally, the turnover of the High Performance Compute & Mission Critical Systems division.