Hewlett Packard Enterprise (HPE) said it revenue fell 7 percent to $7.22 billion in the fiscal third quarter, which ended July 31, 2019.
HPE CEO Antonio Neri said: “We made organic investments in new products and announced strategic acquisitions that drive growth by significantly enhancing our ability to help customers with their digital transformations.”
HPE said its revenue growth was primarily impacted by delivery actions through HP Next, including portfolio rationalization, as well as some microeconomic factors. HPE indicated that its China revenue did not suffer due to its partnership venture H3C.
Cisco, one of the main rivals of HPE, has posted revenue of $13.6 billion, registering 6 percent rise, in its fourth quarter of fiscal year 2019.
HPE has reported Intelligent Edge revenue of $762 million (–3 percent), with 4.9 percent operating margin. HPE Aruba product revenue fell 5 percent to $668 million. HPE Aruba Services revenue grew 16 percent to $94 million.
HPE said its quarterly revenue from hybrid IT reached $5.5 billion (–9 percent), with 12.7 percent operating margin. HPE said its compute revenue decreased 12 percent to $3.151 billion.
HPE’s storage revenue dropped 5 percent to $844 million. Pointnext revenue fell 6 percent to $1.554 billion in the fiscal third quarter.
HPE strengthened its focus on higher-margin products with the company achieving 2 percent growth in High-Performance Compute, 28 percent at Composable Cloud, and 4 percent at Hyperconverged Infrastructure.
HPE Nimble Storage revenue rose 21 percent year. HPE Pointnext operational services orders and Nimble services orders rose 3 percent.
HPE’s financial services revenue was $888 million, with 8.7 percent operating margin, up 90 bps year over year.