HPE adds to cloud and edge services business

HPE adds to cloud and edge services business

Antonio Neri - HPE.jpg

Hewlett Packard Enterprise has posted quarterly sales of $6.9 billion for the third quarter, with cloud and edge services leading the way when it comes to recurring revenues.

While the overall group sales figure was up 3% sequentially and a modest 1% year-on-year, the operating profit for the quarter ended 31 July jumped annually from $12 million to $282 million, and the net profit reached $392 million from $9 million a year ago.

Meanwhile, HPE reported an annualised revenue run-rate (ARR) of $705 million - up 33% from a year ago - and total as-a-service orders were up 46% annually.

Antonio Neri (pictured), president and CEO of Hewlett Packard Enterprise, said: “Our differentiated portfolio is resonating with the market and our edge-to-cloud strategy is driving improved momentum across our businesses.

“Now, more than ever, companies need secure connectivity, faster insights from data and a cloud experience everywhere - digital transformation is no longer a priority but a strategic imperative.”

Intelligent Edge revenue was $867 million, up 27% annually with a 15.8% operating profit margin (compared to 10.4% last time).

High Performance Compute & Mission Critical Systems (HPC & MCS) revenue was $741 million - up 11% with a 3.9% operating profit margin (down from 7% last year).

Compute revenue was $3.1 billion, down 9% with a 11.2% operating profit margin (up from 9.3% a year ago).

Storage revenue was $1.2 billion, up 4% from the prior-year period, with a 15.1% operating profit margin (compared to 15% previously).

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