![]() He has been a stringer for the Associated Press since 1983 and resides in Silicon Valley.San Jose, Calif. Previously, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. He has won several national and regional awards for his work, including a 2011 Folio Award for a profile () of Salesforce founder/CEO Marc Benioff-the only time he has entered the competition. In February 2017 and September 2018, Chris was named among the 250 most influential business journalists in the world () by Richtopia, a UK research firm that used analytics to compile the ranking. In his 16 years and more than 5,000 articles at eWEEK, he distinguished himself in reporting and analysis of the business use of new-gen IT in a variety of sectors, including cloud computing, data center systems, storage, edge systems, security and others. Preimesberger is Editor Emeritus of eWEEK. TBR believes near-term revenue challenges will persist but HPE remains committed to its strategy to drive long-term revenue gains,” Long said.Ĭhris J. “However, HPE’s high-performance computing (HPC) business and its all-flash solutions were bright spots for EG, both of which experienced year-to-year revenue gains. Slower demand from tier-1 customers again hindered EG’s server revenue performance in CY1Q17, marking the second quarter of this headwind. “TBR believes restructuring efforts are hindering HPE’s EG and Software performance as portfolio pieces are shifted to better reflect HPE’s go-forward strategy. “However, TBR believes HPE is focused on the long term and recognizes the near-term challenges such massive portfolio changes will create. “While acquisitions greatly enhance HPE’s existing infrastructure portfolio and position HPE well to address evolving infrastructure demands, and spin-merges sharpen HPE’s infrastructure focus, this high degree of change in a short time span hindered revenue performance,” Long said. That new company is DXC Technology (NYSE: DXC $67.95 market capitalization: $19.3 billion). The spin-merger turned its enterprise services segment into a new entity following a merger with consultancy CSC. HPE finalized the so-called spin-merger of its enterprise services business during the quarter (March 20) and is planning to finalize the spin-merge of its software business in September, adding further complexities to its portfolio realignment efforts, TBR analyst Stephanie Long said in a media advisory. HPE said that it banks more than 60 percent of its revenue from nations other than the United States.ĭespite the revenue issues, HPE’s shares have climbed 8.5 percent this year, slightly outperforming the S&P 500 index’s 7.7 percent gain. Dell EMC, IBM and Cisco Systems are also facing similar market challenges as smaller, more specialized companies are finding traction in their own sectors.ĭuring the Q2 time frame, HPE added to its successful storage business by acquiring all-flash array maker Nimble Storage for $1.1 billion, which had accumulated its own loyal following.Ī strong dollar has eroded the value of HPE’s overseas revenue. HPE isn’t the only conventional all-purpose IT products and services provider that’s treading financial water lately. Its financial services revenue, however, was a positive story, with income growing 11 per cent to $872 million. HPE’s software revenue fell 11 per cent year over year to $685 million. Combined Q2 net revenue was $9.9 billion, which was below the $10.1 billion that analysts surveyed by Bloomberg had projected. HPE said revenue from continuing operations for the quarter was $7.45 billion, a 13 per cent decline from the same period a year earlier. A year ago, HPE reported a profit of $320 million, or 18 cents per share. Overall, the company showed a net loss of $612 million in the second quarter that ended April 30. ![]() Server revenue alone slipped 14 percent to $2.99 billion networking revenue dived 30 percent. Revenue in HPE’s enterprise group division fell nearly 13 percent to $6.24 billion in the quarter ended April 30 - the steepest decline in several quarters. Those winds, when itemized, are comprised of intense international competition, a strong dollar versus other currencies and so-so demand. In its Q2 2017 report issued May 31, the company again described strong market “headwinds” as being detrimental to its bottom line. The venerable IT pioneer again reported a steep drop in quarterly revenue from its frontline enterprise hardware business, the one that that makes and markets server, networking and storage hardware–in other words, the most important items it sells worldwide. Not-so-good quarterly earnings reports are becoming a regular happening at Hewlett Packard Enterprise. ![]() We may make money when you click on links to our partners. EWEEK content and product recommendations are editorially independent.
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