HPE revenue drops 8% to $6.9 billion

Hewlett Packard Enterprise (HPE) said its revenue fell 8 percent to $6.9 billion in the first quarter due to a drop in compute and storage segment results, as supply shortages weighed on sales.
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Net earnings fell to $575 million, or 44 cents per share, from $590 million, or 42 cents per share, a year earlier.

HPE on Tuesday cut its free cash flow forecast for the year citing supply constraints due to the coronavirus outbreak.

HPE now expects 2020 free cash flow between $1.6 billion and $1.8 billion, down from its prior outlook of $1.9 billion to $2.1 billion.

“The health issue is causing disruption to both supply and demand, and while we cannot quantify the real impact at this time, we’re monitoring the situation closely and are working with our suppliers to minimize potential impact,” Chief Financial Officer Tarek Robbiati said on a post earnings call with analysts.