PALO ALTO, Calif., Nov. 21, 2017 (GLOBE NEWSWIRE) -- Hewlett Packard Enterprise (HPE) today announced financial results for its fiscal 2017 and the fourth quarter, ended October 31, 2017.

Fourth Quarter Fiscal Year 2017 Results 
Combined net revenue of $7.8 billion includes $7.7 billion from continuing operations and $174 million from Software, which is now included in discontinued operations.

Fourth quarter net revenue from continuing operations of $7.7 billion was up 5% from the prior year and up 5% when adjusted for divestitures and currency.

Fourth quarter GAAP diluted net EPS from continuing operations was $0.23, up from GAAP diluted net EPS from continuing operations of $0.19 in the prior year.

Fourth quarter non-GAAP diluted net EPS from continuing operations was $0.29, up from non-GAAP diluted net EPS from continuing operations of $0.23 in the prior-year period. Fourth quarter non-GAAP net earnings from continuing operations and non-GAAP diluted net EPS from continuing operations exclude after-tax costs of $95 million and $0.06 per diluted share, respectively, related to transformation costs, separation costs, restructuring costs, disaster charges, amortization of intangible assets, acquisition and other related charges, defined benefit plan settlement charges and remeasurement benefit, an adjustment to earnings from equity interests, tax indemnification adjustments and valuation allowances and separation taxes.

Fiscal Year 2017 Results 
Combined net revenue of $37.4 billion includes $28.9 billion from continuing operations and $8.5 billion from Enterprise Services and Software, which is now included in discontinued operations.

Fiscal 2017 net revenue from continuing operations of $28.9 billion was down 5% from the prior year and up 1% when adjusted for divestitures and currency.

Fiscal 2017 GAAP diluted net EPS from continuing operations was $0.26, down from GAAP diluted net EPS from continuing operations of $1.86 in the prior year.

Fiscal 2017 non-GAAP diluted net EPS from continuing operations was $0.96, down from non-GAAP diluted net EPS from continuing operations of $1.09 in the prior year. Fiscal 2017 non-GAAP net earnings from continuing operations and non-GAAP diluted net EPS from continuing operations exclude after-tax costs of $1.2 billion and $0.70 per diluted share, respectively, related to restructuring costs, transformation costs, amortization of intangible assets, acquisition and other related charges, separation costs, disaster charges, defined benefit plan settlement charges and remeasurement benefit, an adjustment to earnings from equity interests, tax indemnification adjustments and valuation allowances and separation taxes.

“With strong top line revenue growth, earnings above our previous outlook and our second consecutive quarter of sequential margin improvement, our fourth quarter results are a reflection of the progress we have made over the past two years to transform HPE into a nimble, focused and innovative organization,” said Meg Whitman, CEO of HPE.  “Today, HPE has a very strong balance sheet, an industry-leading product portfolio and a world-class leadership team ready to drive the next phase of shareholder value.”

HPE fiscal 2017 full-year and fourth quarter continuing operations financial performance

  FY17   FY16   Y/Y   Q4 FY17   Q4 FY16   Y/Y  
GAAP net revenue ($B) $28.9   $30.3     (4.7% ) $7.7   $7.3     4.6%  
GAAP operating margin   2.2%     12.9%     (10.7 pts. )   (2.9% )   7.9%     (10.8 pts. )
GAAP net earnings ($B) $0.4   $3.2     (86.5% ) $0.4   $0.3     16.0%  
GAAP diluted net earnings per share $0.26   $1.86     (86.0% ) $0.23   $0.19     21.1%  
Non-GAAP operating margin   7.6%     8.8%     (1.2 pts. )   8.2%     9.2%     (1.0pts )
Non-GAAP net earnings ($B) $1.6   $1.9     (15.3% ) $0.5   $0.4     21.6%  
Non-GAAP diluted net earnings per share $0.96   $1.09     (11.9% ) $0.29   $0.23     26.1%  
Cash flow from operations ($B) $0.9   $5.0   ($4.1 ) $0.8   $2.2   ($1.4 )

Information about HPE’s use of non-GAAP financial information is provided under “Use of non-GAAP financial information” below. 

Outlook

For the fiscal 2018 first quarter, Hewlett Packard Enterprise estimates GAAP diluted net EPS to be in the range of $0.01 to $0.05 and non-GAAP diluted net EPS to be in the range of $0.20 to $0.24. Fiscal 2018 first quarter non-GAAP diluted net EPS from continuing operations estimates exclude after-tax costs of approximately $0.19 per diluted share, related primarily to transformation costs, separation costs, and the amortization of intangible assets.

Fiscal 2017 fourth quarter segment results

  • Enterprise Group (ETOLF) revenue was $6.9 billion, flat year over year, up 1% when adjusted for currency, with a 10.6% operating margin. Servers revenue was down 5%, down 5% when adjusted for currency, Storage revenue was up 5%, up 5% when adjusted for currency, Networking revenue was up 21%, up 21% when adjusted for currency, and Technology Services revenue was up 2%, up 3% when adjusted for currency.  
  • Financial Services revenue was $1.0 billion, up 24% year over year, net portfolio assets were up 1%, and financing volume was flat year over year. The business delivered an operating margin of 7.7%.

    Revenue from continuing operations adjusted for divestitures and currency excludes revenue resulting from businesses divestitures in fiscal 2017 and 2016 and also assumes no change in the foreign exchange rate from the prior-year period. A reconciliation of GAAP revenue to revenue adjusted for divestitures and currency is provided in the earnings presentation at investors.hpe.com

About Hewlett Packard Enterprise

Hewlett Packard Enterprise (HPE) is an industry leading technology company that enables customers to go further, faster. With the industry’s most comprehensive portfolio, spanning the cloud to the data center to workplace applications, our technology and services help customers around the world make IT more efficient, more productive and more secure.