back to article HPE may as well have stayed at home in bed: Biz turns non-profit as sales fall, costs rise

HPE announced its fiscal third quarter results for this year on Tuesday, reporting mixed results with an overall dip in sales and growth in gross margins compared to the previous year. However, the enterprise giant couldn't do the biggest job – actually turning a profit. CEO Antonio Neri opened an earnings call with analysts …

  1. robidy

    One does wonder what it could have been...if they'd not been distracted by a court case in London.

    Sometimes it's better to focus on your core business and not being bitter about the past.

    1. Anonymous Coward
      Anonymous Coward

      focus on your core business and not being bitter about the past.

      I thought being bitter about the past was a major point of the business plan?

      After all, it worked so well for Novell...

      1. Michael Wojcik Silver badge

        Eh, Novell is doing pretty well these days. Of course that's as a Micro Focus product group. Much like, oh, the former software arm of HPE.

    2. Benson's Cycle

      I doubt the court case has anything to do with it. But the circumstances that led up to it may be extremely relevant.

    3. ManMountain1

      Sounding bitter there!

  2. Oneman2Many

    To much vapourware

    Delivering on some the products promised would help ?

    Hardware, software and services all failed to deliver. again !!!

  3. Will Godfrey Silver badge
    Unhappy

    Form over function?

    This is what happens when a company run by the {cough} elite {cough} focuses on image instead of products.

    1. Anonymous Coward
      Anonymous Coward

      Re: Form over function?

      It's what you get when you have Break-fix Services people running a business when they couldn't even run the Break-fix business profitably.

  4. NeilPost Bronze badge

    Perhaps they will do a mea culpable, stop the expensive lawsuit - unless litigation goes all SCO-like as the primary profit centre - and do an Altria/PMI ...., decide to do a remerge with Hewlett Packard Inc and regain economies of scale on hardware and the profitability (on a vaping scale) of printer ink.

    1. Doctor Syntax Silver badge

      HP Ink might not want to re-merge.

      1. NeilPost Bronze badge

        Maybe not but 2 HP’s is still a bit bonkers.

        At least Volvo Trucks and Volvo cars or Pizza Hut Restaurants and Pizza Hut delivery kinda do what it says on the tin separate entity wise.

        1. Anonymous Coward
          Anonymous Coward

          So you're suggesting a re-brand?

          HP Ink and HP Fails?

  5. Anonymous Coward
    Anonymous Coward

    Shares up nearly a dollar after-hours which is a strangely positive reaction given the volatility in tech stocks at the moment.

    1. Anonymous Coward
      Anonymous Coward

      relief that it wasn't worse?

      1. Michael Wojcik Silver badge

        Or institutional buyers deciding that now the news was confirmed, the price wasn't likely to drop much more (for the moment), so it was time to buy. HPE is still a tech blue chip, so it helps fill a category in many portfolios.

    2. Anonymous Coward
      Anonymous Coward

      My guess is market sentiment.

      HPE's biggest challenge is that their markets are shrinking fast and they don't have any brilliant ideas for how to change that. Buying other companies and integrating their products hasn't worked well for them (and no, I'm not think of Autonomy...) while the products that have sold well are looking old and stale.

      The biggest warning signs are around the growth in traditional first world markets - there's none. Its flat or declining with only AsiaPac and Africa providing any good news. And China might ruin that.

      1. elip

        Actually, buying Nimble Storage has worked out quite well. They're profitable, growing in sales quarter after quarter, and have a quality product that's actually *liked* by the folks that have to manage it.

        1. Anonymous Coward
          Anonymous Coward

          Nimble may be the exception to the rule, but even then at the cost of 3PAR sales, workforce and prestige.

    3. hidden

      No mystery. The guidance got raised.

      HPE’s full-year guidance now sits between $1.72 and $1.76, as opposed to analysts’ predictions of $1.68 per share.

  6. Imhotep

    All A Matter Of Perception

    If HPE redefined their mission statement as providing outstanding compensation to a non- performing C- Suite, we would have to applaud their ongoing success.

    In fact, if you ignore their words and focus on their actions and results: that would appear to have been the plan all along.

  7. Wonder Dog

    Like the rest of the tin floggers HPE are blaming everything but the real cause of their problems... the hyperscale cloud providers. Workloads that were once on HPE, Dell, Netapp etc are moved to AWS Azure or Google... but yeah blame trade wars if you want...but if that's true how come the hyperscalers aren't showing similar declines

    1. elip

      Because the hyperscalers are a book shop, an advertising company, and a software company? None of them are primarily in the low-margin business of making hardware. None of them have *any* clue as to how to engineer a piece of hardware (seen it first hand with Google).

      1. Anonymous Coward
        Anonymous Coward

        "None of them are primarily in the low-margin business of making hardware."

        Ummm....are you sure? Typically an engineer would design a piece of hardware having a great deal of input into the specs of components and the finished product while a technician would take engineered components and assemble them...

        Google may not make hardware to your standards (i.e. sturdiness or expandability), but you're buying off the shelf items while they design their own NIC's and associated switches/AI chips/power supplies/motherboards to ensure they are as cost-effective as possible when deployed in very large numbers (i.e. ~1m units/year - that's a guesstimate for Google and it maybe on the high side depending on how many different "hardware versions" they have in a given time period).

  8. Anonymous Coward
    Anonymous Coward

    Profit

    They are a profitable business. The results included a $666mil arbitration judgement they had with DXC.

    Unfortunately this type of "journalism" is precisely why i no longer read this site at the rate I used to.

    1. Anonymous Coward
      Anonymous Coward

      Re: Profit

      Yes, that's an important 1-time charge to the numbers.

      However, the results were weaker than Dell's results for their comparable infrastructure group (server, storage & networking), which is significant.

  9. fredesmite Bronze badge
    Mushroom

    The LAYOFFS will be HUGE

    Whose left to turn off the lights ?

  10. fredesmite Bronze badge
    Mushroom

    Remember HP use to use "INVENT" as a logo ?

    Now they use : OUTSOURCED TO THE LOWEST BIDDER

POST COMMENT House rules

Not a member of The Register? Create a new account here.

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon

Biting the hand that feeds IT © 1998–2019