Whitman On The Record
Hewlett Packard Enterprise CEO Meg Whitman spoke with CRN about the future impact of the industry wide memory shortage which has resulted in a whopping 50 percent increase in the cost of memory, the new unified Dell EMC channel program, acquisition strategy and her personal pledge to partners.
Whitman's comments came after the company posted a 10 percent drop in sales to $11.4 billion for its first fiscal quarter ended Jan. 31 compared with $12.72 billion in the year ago period. The Wall Street consensus was sales of $12.07 billion, according to analysts polled by Thomson Reuters.
HPE's mainstay Enterprise Group sales were down 12 percent in the quarter to $6.32 billion compared with $7.18 billion in the year ago period. Server sales in the quarter were down 12, while storage sales were down 13 percent.
HPE reported non GAAP diluted net earnings per share in the quarter of 45 cents per share, up one cent from the Wall Street consensus of 44 cents per share, according to Thomson Reuters.
HPE said it was hit hard in the quarter by higher memory prices, foreign currency impact, sales execution in Enterprise Group and lower than expected demand from a tier one cloud service provider.