Hewlett Packard Enterprise reported revenue of $6.8 billion for its fiscal 2020 third quarter, ended July 31, 2020, down 6% from the prior-year period or 4% when adjusted for currency. Revenue grew 13% sequentially or 14% when adjusted for currency driven by solid execution in clearing historic backlog by approximately $500 million during the quarter. Gross profit was $2.1 billion, up 8% sequentially, which the company credits to strong operation execution.
“Our Q3 results are marked by strong execution and sequential growth,” said Antonio Neri, president and CEO of Hewlett Packard Enterprise. “We significantly improved operational and supply chain execution and advanced our innovation agenda with the introduction of HPE GreenLake cloud services solutions, our new HPE Ezmeral software portfolio, and our planned acquisition of SD-WAN leader Silver Peak.”
“We gained momentum in key areas of differentiation and accelerated our as-a-service pivot with strong ARR growth and a record number of HPE GreenLake services orders,” he continued. “Navigating through the pandemic and planning for a post-COVID world have increased customers’ needs for as-a-service offerings, secure connectivity, remote work capabilities and analytics to unlock insights from data that are aligned to our strategy. We see a tremendous opportunity to help our customers drive digital transformations as they continue to adapt to operate in a new world.”
Highlights
- Intelligent Edge revenue was $684 million, down 12% year over year or 11% when adjusted for currency, with 8.6% operating profit margin, compared to 6.8% from the prior-year period. Revenue grew 3% sequentially demonstrating continued momentum.
- Compute revenue was $3.4 billion, flat year over year or up 1% when adjusted for currency, with 8.5% operating profit margin, compared to 12.9% from the prior-year period. Revenue grew 28% sequentially or 29% when adjusted for currency as we executed against the backlog and improved supply chain execution.
- High Performance Compute & Mission Critical Systems (HPC & MCS) revenue was $649 million, up 3% year over year, with 5.5% operating profit margin, compared to 8.1% from the prior-year period. Revenue grew 10% sequentially as installations and customer acceptance of systems improved.
- Storage revenue was $1.1 billion, down 10% year over year or 9% when adjusted for currency, with 12.9% operating profit margin, compared to 16.5% from the prior-year period. Revenue grew 4% sequentially driven by improved operational execution and reduction of backlog.
- Advisory & Professional Services (A&PS) revenue was $226 million, down 7% year over year or 5% when adjusted for currency, with (1.8%) operating profit margin, compared to (3.7%) from the prior-year period. Revenue was down 5% sequentially.
- Financial Services revenue was $811 million, down 9% year over year or 6% when adjusted for currency and down 3% sequentially or 2% when adjusted for currency, with 8.0% operating profit margin, compared to 8.7% from the prior-year period.