Hewlett Packard Enterprise (HPE) has reported a positive third quarter and busy market activity among its channel partners.
Overall revenue was up a per cent to $7 billion, from the prior year, and up 3.5 per cent in constant currency.
Annualised revenue run-rate (ARR) saw an increase of 48 per cent to $1.3 billion. At the same time, gross margins were 35.8 per cent for GAAP – up 130 basis points from the prior year and down 20 basis points sequentially.
Non-GAAP margins were 35.9 per cent, up 120 basis points from the prior-year period and down 30 basis points sequentially.
HPE CEO of HPE Antonio Neri said HPE delivered another solid quarter in Q3, powered by standout performances in the Intelligent Edge and HPE GreenLake.
“Demand improved sequentially across all key business segments, with particular strength in our HPC & AI segment as customers discover HPE’s unique capabilities to power unprecedented levels of performance for AI at scale.”
A study of more than 1,800 channel partners found that HPE was flat out.
Intelligent Edge revenue was $1.4 billion, up 50 per cent from the prior-year period in actual dollars and 53 per cent in constant currency, with 29.7 per cent operating profit margin, compared to 16.5 per cent in the prior-year period.
High performance computing and artificial intelligence revenue was $836 million, up a per cent from the prior-year period in actual dollars and three per cent in constant currency.
However, HPE reported some slowing down in compute revenue, which was $2.6 billion, down 13 per cent from the prior-year period in actual dollars and 10 per cent in constant currency.
Storage revenue was $1.1 billion, also down five per cent from the prior-year period in actual dollars and down 2 per cent in constant currency.
Based on these results, HPE estimated that revenue in Q4 fiscal 2023 will be in the range of $7.2 billion to $7.5 billion, and fiscal 2023 revenue growth to be in the range of four per cent to six per cent .
