Hewlett Packard Enterprise announced the company’s financial results for the first quarter, which ended January 31. The company also raised the second quarter and fiscal year outlook. The increasing demand drives order growth by 20% year-over-year, which is the third consecutive quarter with over 20% order growth.
At the end of the quarter, Intelligent Edge revenue was $901 million, up 11% year-over-year. High-Performance Computing & Artificial Intelligence revenue was $790 million, with a 4% increase. Compute revenue was $3.0 billion, up 1% from the prior-year period. Storage revenue was $1.2 billion, down 3% from the previous year’s first quarter and Financial Services revenue was $842 million, decreased by 2%.
- Net revenue of $7.0 billion, down 5% sequentially and up 2% from the prior-year period which is in-line with normal sequential seasonality.
- Annualized revenue run-rate of $798 million, up 23% from the prior-year period and total as-a-Service orders1 were up 136% from the prior-year period. Based on strong customer demand and growth in orders, we reiterate our 2021 Securities Analyst Meeting ARR guidance of 35-45% Compounded Annual Growth Rate from fiscal year 2021 to fiscal year 2024.
- GAAP gross margins of 33.7%, up 80 basis points sequentially and 20 basis points from the prior-year period, and non-GAAP gross margins of 33.9%, up 90 basis points sequentially and 20 basis points from the prior-year period.
- GAAP diluted net EPS was $0.39, compared to $0.17 in the prior-year period and above the previously provided outlook of $0.19 to $0.27 per share.
- Non-GAAP diluted net EPS was $0.53, compared to $0.52 in the prior-year period and above the previously provided outlook of $0.42 to $0.50 per share. First quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $184 million and $0.14 per diluted share, respectively, primarily related to stock-based compensation expense, transformation costs, and the amortization of intangible assets.
The company raised GAAP diluted net EPS outlook of $1.36 to $1.50 and non-GAAP diluted net EPS outlook of $2.03 to $2.17 for the fiscal year. For the second quarter, HPE estimates GAAP diluted net EPS to be in the range of $0.18 to $0.26 and non-GAAP diluted net EPS to be in the range of $0.41 to $0.49. Antonio Neri, president and CEO of Hewlett Packard Enterprise said,
« The quarter was characterized by robust customer demand and profitability, demonstrating the strength of our differentiated edge-to-cloud strategy and portfolio innovation. It is clear from strong customer feedback and momentum across our businesses that we are increasingly well positioned to capitalize on the significant megatrends through our HPE GreenLake platform. »