HPE Posts Loss On Revenue Drop
Hewlett Packard Enterprise revenue fell 13 percent in the second quarter ended April 30, marking the steepest decline since the company was spun out from Hewlett-Packard in 2015.
Th result is said to reflect tepid demand and a strong dollar.
The company reported a net loss of US$612 million in the second quarter, compared with a profit of $320 million a year earlier. Revenue of $9.9 billion, however, beat analysts’ expectations of $9.64 billion.
Results in HPE’s enterprise group division, made up largely of servers and other hardware products, dipped 14 percent in the quarter, also a record fall, while networking revenue plunged 30 percent.
Under CEO Meg Whitman, HPE has inked deals to focus better on the enterprise group business, which generates about 62 percent of total revenue.
The company has sold its consulting and outsourcing services unit and signed a deal to sell its software division.