HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES |
||||||||||||
Condensed Consolidated Statements of Earnings |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
||||||||||
|
|
For the three months ended |
||||||||||
|
|
January 31, 2024 |
|
October 31, 2023 |
|
January 31, 2023 |
||||||
|
|
In millions, except per share amounts |
||||||||||
Net revenue |
$ |
6,755 |
|
$ |
7,351 |
|
$ |
7,809 |
|
|||
Costs and Expenses: |
|
|
|
|||||||||
Cost of sales |
|
4,298 |
|
|
4,792 |
|
|
5,151 |
|
|||
Research and development |
|
582 |
|
|
578 |
|
|
623 |
|
|||
Selling, general and administrative |
|
1,216 |
|
|
1,332 |
|
|
1,257 |
|
|||
Amortization of intangible assets |
|
71 |
|
|
72 |
|
|
73 |
|
|||
Transformation costs |
|
20 |
|
|
56 |
|
|
102 |
|
|||
| Disaster (recovery) charges |
|
— |
|
|
(4 |
) |
|
1 |
|
|||
| Acquisition, disposition and other related charges |
|
43 |
|
|
18 |
|
|
11 |
|
|||
| Total costs and expenses |
|
6,230 |
|
|
6,844 |
|
|
7,218 |
|
|||
| Earnings from operations |
|
525 |
|
|
507 |
|
|
591 |
|
|||
| Interest and other, net (1) |
|
(88 |
) |
|
(23 |
) |
|
(26 |
) |
|||
| Earnings from equity interests |
|
46 |
|
|
65 |
|
|
58 |
|
|||
| Earnings before provision for taxes |
|
483 |
|
|
549 |
|
|
623 |
|
|||
| (Provision) benefit for taxes |
|
(96 |
) |
|
93 |
|
|
(122 |
) |
|||
| Net earnings |
$ |
387 |
|
$ |
642 |
|
$ |
501 |
|
|||
| Net Earnings Per Share: |
|
|
|
|||||||||
| Basic |
$ |
0.30 |
|
$ |
0.50 |
|
$ |
0.39 |
|
|||
| Diluted |
$ |
0.29 |
|
$ |
0.49 |
|
$ |
0.38 |
|
|||
| Cash dividends declared per share |
$ |
0.13 |
|
$ |
0.12 |
|
$ |
0.12 |
|
|||
| Weighted-average Shares Used to Compute Net Earnings Per Share: |
|
|
|
|||||||||
| Basic |
|
1,301 |
|
|
1,295 |
|
|
1,298 |
|
|||
| Diluted |
|
1,316 |
|
|
1,315 |
|
|
1,315 |
|
|||
| HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES |
||||||||||||
| Reconciliation of GAAP to Non-GAAP measures |
||||||||||||
| (Unaudited) |
||||||||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
For the three months ended |
||||||||||
|
|
|
January 31, 2024 |
|
October 31, 2023 |
|
January 31, 2023 |
||||||
|
|
|
Dollars in millions |
||||||||||
| GAAP net revenue |
$ |
6,755 |
|
|
$ |
7,351 |
|
|
$ |
7,809 |
|
|
| GAAP cost of sales |
|
4,298 |
|
|
|
4,792 |
|
|
|
5,151 |
|
|
| GAAP gross profit |
|
2,457 |
|
|
|
2,559 |
|
|
|
2,658 |
|
|
| Non-GAAP Adjustments |
|
|
|
|
|
|||||||
| Stock-based compensation expense |
|
16 |
|
|
|
9 |
|
|
|
16 |
|
|
| Disaster recovery |
|
(25 |
) |
|
|
(10 |
) |
|
|
— |
|
|
| Non-GAAP gross profit |
$ |
2,448 |
|
|
$ |
2,558 |
|
|
$ |
2,674 |
|
|
|
|
|
|
|
|
|
|||||||
| GAAP gross profit margin |
|
36.4 |
% |
|
|
34.8 |
% |
|
|
34.0 |
% |
|
| Non-GAAP adjustments |
|
(0.2 |
)% |
|
|
— |
% |
|
|
0.2 |
% |
|
| Non-GAAP gross profit margin |
|
36.2 |
% |
|
|
34.8 |
% |
|
|
34.2 |
% |
|
|
|
For the three months ended |
|||||||||||
|
|
January 31, 2024 |
|
October 31, 2023 |
|
January 31, 2023 |
|||||||
|
|
Dollars in millions |
|||||||||||
| GAAP earnings from operations |
$ |
525 |
|
|
$ |
507 |
|
|
$ |
591 |
|
|
| Non-GAAP Adjustments |
|
|
|
|
|
|||||||
| Amortization of intangible assets |
|
71 |
|
|
|
72 |
|
|
|
73 |
|
|
| Transformation costs |
|
20 |
|
|
|
56 |
|
|
|
102 |
|
|
| Disaster (recovery) charges |
|
(25 |
) |
|
|
(14 |
) |
|
|
1 |
|
|
| Stock-based compensation expense |
|
141 |
|
|
|
71 |
|
|
|
140 |
|
|
| Acquisition, disposition and other related charges |
|
43 |
|
|
|
18 |
|
|
|
11 |
|
|
| Non-GAAP earnings from operations |
$ |
775 |
|
|
$ |
710 |
|
|
$ |
918 |
|
|
|
|
|
|
|
|
|
|||||||
| GAAP operating profit margin |
|
7.8 |
% |
|
|
6.9 |
% |
|
|
7.6 |
% |
|
| Non-GAAP adjustments |
|
3.7 |
% |
|
|
2.8 |
% |
|
|
4.2 |
% |
|
| Non-GAAP operating profit margin |
|
11.5 |
% |
|
|
9.7 |
% |
|
|
11.8 |
% |
|
| HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES |
||||||||||||||||||||||||
| Reconciliation of GAAP to Non-GAAP measures |
||||||||||||||||||||||||
| (Unaudited) |
||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||
|
|
|
For the three months ended |
||||||||||||||||||||||
|
|
|
January 31,
|
|
Diluted net earnings per share |
|
October 31,
|
|
Diluted net earnings per share |
|
January 31,
|
|
Diluted net earnings per share |
||||||||||||
|
|
|
Dollars in millions, except per share amounts |
||||||||||||||||||||||
| GAAP net earnings |
$ |
387 |
|
$ |
0.29 |
|
$ |
642 |
|
$ |
0.49 |
|
$ |
501 |
|
$ |
0.38 |
|
||||||
| Non-GAAP Adjustments: |
|
|
|
|
|
|
||||||||||||||||||
| Amortization of intangible assets |
|
71 |
|
|
0.05 |
|
|
72 |
|
|
0.05 |
|
|
73 |
|
|
0.06 |
|
||||||
| Transformation costs |
|
20 |
|
|
0.02 |
|
|
56 |
|
|
0.05 |
|
|
102 |
|
|
0.07 |
|
||||||
| Disaster (recovery) charges |
|
(25 |
) |
|
(0.02 |
) |
|
(14 |
) |
|
(0.01 |
) |
|
1 |
|
|
— |
|
||||||
| Stock-based compensation expense |
|
141 |
|
|
0.11 |
|
|
71 |
|
|
0.05 |
|
|
140 |
|
|
0.11 |
|
||||||
| Acquisition, disposition and other related charges |
|
43 |
|
|
0.03 |
|
|
18 |
|
|
0.01 |
|
|
11 |
|
|
0.01 |
|
||||||
| Earnings from equity interests (2) |
|
(46 |
) |
|
(0.03 |
) |
|
2 |
|
|
— |
|
|
12 |
|
|
0.01 |
|
||||||
| Loss on equity investments, net |
|
61 |
|
|
0.05 |
|
|
40 |
|
|
0.03 |
|
|
— |
|
|
— |
|
||||||
| Adjustments for taxes |
|
(16 |
) |
|
(0.02 |
) |
|
(203 |
) |
|
(0.15 |
) |
|
(13 |
) |
|
(0.01 |
) |
||||||
| Other adjustments (3) |
|
2 |
|
|
— |
|
|
(4 |
) |
|
— |
|
|
1 |
|
|
— |
|
||||||
| Non-GAAP net earnings |
$ |
638 |
|
$ |
0.48 |
|
$ |
680 |
|
$ |
0.52 |
|
$ |
828 |
|
$ |
0.63 |
|
||||||
|
|
For the three months ended |
|||||||||||
|
|
January 31, 2024 |
|
October 31, 2023 |
|
January 31, 2023 |
|||||||
|
|
In millions |
|||||||||||
| Net cash provided by (used in) operating activities |
$ |
64 |
|
|
$ |
2,843 |
|
|
$ |
(829 |
) |
|
| Investment in property, plant and equipment |
|
(656 |
) |
|
|
(675 |
) |
|
|
(794 |
) |
|
| Proceeds from sale of property, plant and equipment |
|
96 |
|
|
|
255 |
|
|
|
159 |
|
|
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
14 |
|
|
|
(102 |
) |
|
|
138 |
|
|
| Free cash flow |
$ |
(482 |
) |
|
$ |
2,321 |
|
|
$ |
(1,326 |
) |
|
| HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES |
||||||||
| Condensed Consolidated Balance Sheets |
||||||||
|
|
|
|
||||||
|
|
|
As of |
||||||
|
|
|
January 31, 2024 |
|
October 31, 2023 |
||||
|
|
|
(Unaudited) |
|
(Audited) |
||||
|
|
|
In millions, except par value |
||||||
| ASSETS |
|
|
|
|
||||
| Current Assets: |
|
|
|
|||||
| Cash and cash equivalents |
$ |
3,758 |
|
|
$ |
4,270 |
|
|
| Accounts receivable, net of allowances |
|
3,781 |
|
|
|
3,481 |
|
|
| Financing receivables, net of allowances |
|
3,629 |
|
|
|
3,543 |
|
|
| Inventory |
|
6,049 |
|
|
|
4,607 |
|
|
| Other current assets |
|
3,027 |
|
|
|
3,047 |
|
|
| Total current assets |
|
20,244 |
|
|
|
18,948 |
|
|
| Property, plant and equipment, net |
|
5,997 |
|
|
|
5,989 |
|
|
| Long-term financing receivables and other assets |
|
11,542 |
|
|
|
11,377 |
|
|
| Investments in equity interests |
|
2,249 |
|
|
|
2,197 |
|
|
| Goodwill and intangible assets |
|
18,570 |
|
|
|
18,642 |
|
|
| Total assets |
$ |
58,602 |
|
|
$ |
57,153 |
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|||||
| Current Liabilities: |
|
|
|
|||||
| Notes payable and short-term borrowings |
$ |
4,957 |
|
|
$ |
4,868 |
|
|
| Accounts payable |
|
8,125 |
|
|
|
7,136 |
|
|
| Employee compensation and benefits |
|
1,027 |
|
|
|
1,724 |
|
|
| Taxes on earnings |
|
182 |
|
|
|
155 |
|
|
| Deferred revenue |
|
3,718 |
|
|
|
3,658 |
|
|
| Accrued restructuring |
|
121 |
|
|
|
180 |
|
|
| Other accrued liabilities |
|
4,505 |
|
|
|
4,161 |
|
|
| Total current liabilities |
|
22,635 |
|
|
|
21,882 |
|
|
| Long-term debt |
|
7,840 |
|
|
|
7,487 |
|
|
| Other non-current liabilities |
|
6,659 |
|
|
|
6,546 |
|
|
|
|
|
|
|
|||||
| Stockholders’ Equity |
|
|
|
|||||
| Common stock, $0.01 par value (9,600 shares authorized; 1,300 and 1,283 shares issued and outstanding as of January 31, 2024 and October 31, 2023, respectively) |
|
13 |
|
|
|
13 |
|
|
| Additional paid-in capital |
|
28,239 |
|
|
|
28,199 |
|
|
| Accumulated deficit |
|
(3,728 |
) |
|
|
(3,946 |
) |
|
| Accumulated other comprehensive loss |
|
(3,108 |
) |
|
|
(3,084 |
) |
|
| Total HPE stockholders’ equity |
|
21,416 |
|
|
|
21,182 |
|
|
| Non-controlling interests |
|
52 |
|
|
|
56 |
|
|
| Total stockholders’ equity |
|
21,468 |
|
|
|
21,238 |
|
|
| Total liabilities and stockholders’ equity |
$ |
58,602 |
|
|
$ |
57,153 |
|
|
| HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES |
||||||||
| Condensed Consolidated Statements of Cash Flows |
||||||||
| (Unaudited) |
||||||||
|
|
|
|
||||||
|
|
|
For the three months ended |
||||||
|
|
|
January 31, 2024 |
|
January 31, 2023 |
||||
|
|
|
In millions |
||||||
| Cash Flows from Operating Activities: |
|
|
|
|||||
| Net earnings |
$ |
387 |
|
|
$ |
501 |
|
|
| Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: |
|
|
|
|||||
| Depreciation and amortization |
|
657 |
|
|
|
656 |
|
|
| Stock-based compensation expense |
|
141 |
|
|
|
140 |
|
|
| Provision for inventory and credit losses |
|
32 |
|
|
|
45 |
|
|
| Restructuring charges |
|
7 |
|
|
|
72 |
|
|
| Deferred taxes on earnings |
|
(22 |
) |
|
|
20 |
|
|
| Earnings from equity interests |
|
(46 |
) |
|
|
(58 |
) |
|
| Other, net |
|
72 |
|
|
|
(60 |
) |
|
| Changes in Operating Assets and Liabilities, Net of Acquisitions: |
|
|
|
|||||
| Accounts receivable |
|
(310 |
) |
|
|
(112 |
) |
|
| Financing receivables |
|
(190 |
) |
|
|
(523 |
) |
|
| Inventory |
|
(1,461 |
) |
|
|
495 |
|
|
| Accounts payable |
|
1,041 |
|
|
|
(2,195 |
) |
|
| Taxes on earnings |
|
67 |
|
|
|
46 |
|
|
| Restructuring |
|
(78 |
) |
|
|
(96 |
) |
|
| Other assets and liabilities |
|
(233 |
) |
|
|
240 |
|
|
| Net cash provided by (used in) operating activities |
|
64 |
|
|
|
(829 |
) |
|
| Cash Flows from Investing Activities: |
|
|
|
|||||
| Investment in property, plant and equipment |
|
(656 |
) |
|
|
(794 |
) |
|
| Proceeds from sale of property, plant and equipment |
|
96 |
|
|
|
159 |
|
|
| Purchases of investments |
|
(16 |
) |
|
|
— |
|
|
| Proceeds from maturities and sales of investments |
|
4 |
|
|
|
4 |
|
|
| Financial collateral posted |
|
(439 |
) |
|
|
(682 |
) |
|
| Financial collateral received |
|
271 |
|
|
|
108 |
|
|
| Payments made in connection with business acquisitions, net of cash acquired |
|
— |
|
|
|
(32 |
) |
|
| Net cash used in investing activities |
|
(740 |
) |
|
|
(1,237 |
) |
|
| Cash Flows from Financing Activities: |
|
|
|
|||||
| Short-term borrowings with original maturities less than 90 days, net |
|
(17 |
) |
|
|
745 |
|
|
| Proceeds from debt, net of issuance costs |
|
859 |
|
|
|
261 |
|
|
| Payment of debt |
|
(515 |
) |
|
|
(661 |
) |
|
| Net payments related to stock-based award activities |
|
(94 |
) |
|
|
(107 |
) |
|
| Repurchase of common stock |
|
(3 |
) |
|
|
(73 |
) |
|
| Cash dividends paid to non-controlling interests, net of contributions |
|
(8 |
) |
|
|
— |
|
|
| Cash dividends paid to shareholders |
|
(169 |
) |
|
|
(156 |
) |
|
| Net cash provided by financing activities |
|
53 |
|
|
|
9 |
|
|
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
14 |
|
|
|
138 |
|
|
| Decrease in cash, cash equivalents and restricted cash |
|
(609 |
) |
|
|
(1,919 |
) |
|
| Cash, cash equivalents and restricted cash at beginning of period |
|
4,581 |
|
|
|
4,763 |
|
|
| Cash, cash equivalents and restricted cash at end of period |
$ |
3,972 |
|
|
$ |
2,844 |
|
|
| HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES |
||||||||||||
| Segment Information |
||||||||||||
| (Unaudited) |
||||||||||||
|
|
|
|
||||||||||
|
|
|
For the three months ended |
||||||||||
|
|
|
January 31, 2024 |
|
October 31, 2023 |
|
January 31, 2023 |
||||||
|
|
|
In millions |
||||||||||
| Net Revenue: |
|
|
|
|
|
|
||||||
| Server (4) |
|
$ |
3,352 |
|
|
$ |
3,574 |
|
|
$ |
4,332 |
|
| Hybrid Cloud (4) |
|
|
1,248 |
|
|
|
1,341 |
|
|
|
1,384 |
|
| Intelligent Edge (4) |
|
|
1,201 |
|
|
|
1,410 |
|
|
|
1,169 |
|
| Financial Services |
|
|
873 |
|
|
|
876 |
|
|
|
873 |
|
| Corporate Investments and other (4) |
|
|
238 |
|
|
|
263 |
|
|
|
234 |
|
| Total segment net revenue |
|
|
6,912 |
|
|
|
7,464 |
|
|
|
7,992 |
|
| Elimination of intersegment net revenue |
|
|
(157 |
) |
|
|
(113 |
) |
|
|
(183 |
) |
| Total consolidated net revenue |
|
$ |
6,755 |
|
|
$ |
7,351 |
|
|
$ |
7,809 |
|
|
|
|
|
|
|
|
|
||||||
| Earnings Before Taxes (4) : |
|
|
|
|
|
|
||||||
| Server |
|
$ |
383 |
|
|
$ |
360 |
|
|
$ |
678 |
|
| Hybrid Cloud |
|
|
47 |
|
|
|
51 |
|
|
|
80 |
|
| Intelligent Edge |
|
|
353 |
|
|
|
382 |
|
|
|
227 |
|
| Financial Services |
|
|
74 |
|
|
|
70 |
|
|
|
63 |
|
| Corporate Investments and other |
|
|
(10 |
) |
|
|
(16 |
) |
|
|
(22 |
) |
| Total segment earnings from operations |
|
|
847 |
|
|
|
847 |
|
|
|
1,026 |
|
|
|
|
|
|
|
|
|
||||||
| Unallocated corporate costs and eliminations |
|
|
(72 |
) |
|
|
(137 |
) |
|
|
(108 |
) |
| Stock-based compensation expense |
|
|
(141 |
) |
|
|
(71 |
) |
|
|
(140 |
) |
| Amortization of intangible assets |
|
|
(71 |
) |
|
|
(72 |
) |
|
|
(73 |
) |
| Transformation costs |
|
|
(20 |
) |
|
|
(56 |
) |
|
|
(102 |
) |
| Disaster recovery (charges) |
|
|
25 |
|
|
|
14 |
|
|
|
(1 |
) |
| Acquisition, disposition and other related charges |
|
|
(43 |
) |
|
|
(18 |
) |
|
|
(11 |
) |
| Interest and other, net (1) |
|
|
(88 |
) |
|
|
(23 |
) |
|
|
(26 |
) |
| Earnings from equity interests |
|
|
46 |
|
|
|
65 |
|
|
|
58 |
|
| Total pretax earnings |
|
$ |
483 |
|
|
$ |
549 |
|
|
$ |
623 |
|
| HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES |
||||||||||||||||
| Segment Information |
||||||||||||||||
| (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
|
For the three months ended |
|
Change (%) |
||||||||||||
|
|
|
January 31, 2024 |
|
October 31, 2023 |
|
January 31, 2023 |
|
Q/Q |
|
Y/Y |
||||||
|
|
|
Dollars in millions |
||||||||||||||
| Net Revenue: |
|
|
|
|
|
|||||||||||
| Server (4) |
$ |
3,352 |
|
$ |
3,574 |
|
$ |
4,332 |
|
(6%) |
(23%) |
|||||
| Hybrid Cloud (4) |
|
1,248 |
|
|
1,341 |
|
|
1,384 |
|
(7) |
(10) |
|||||
| Intelligent Edge (4) |
|
1,201 |
|
|
1,410 |
|
|
1,169 |
|
(15) |
3 |
|||||
| Financial Services |
|
873 |
|
|
876 |
|
|
873 |
|
— |
— |
|||||
| Corporate Investments and other (4) |
|
238 |
|
|
263 |
|
|
234 |
|
(10) |
2 |
|||||
| Total segment net revenue |
|
6,912 |
|
|
7,464 |
|
|
7,992 |
|
(7) |
(14) |
|||||
| Elimination of intersegment net revenue |
|
(157 |
) |
|
(113 |
) |
|
(183 |
) |
39 |
(14) |
|||||
| Total consolidated net revenue |
$ |
6,755 |
|
$ |
7,351 |
|
$ |
7,809 |
|
(8%) |
(14%) |
|||||
|
|
For the three months ended |
|
Change in operating profit margin (pts) |
||||||||||||
|
|
January 31, 2024 |
|
October 31, 2023 |
|
January 31, 2023 |
|
Q/Q |
|
Y/Y |
||||||
| Segment Operating Profit Margin (4) : |
|
|
|
|
|
|
|
|
|
||||||
| Server |
11.4 |
% |
|
10.1 |
% |
|
15.7 |
% |
|
1.3 |
|
(4.3 |
) |
||
| Hybrid Cloud |
3.8 |
% |
|
3.8 |
% |
|
5.8 |
% |
|
— |
|
|
(2.0 |
) |
|
| Intelligent Edge |
29.4 |
% |
|
27.1 |
% |
|
19.4 |
% |
|
2.3 |
|
|
10.0 |
|
|
| Financial Services |
8.5 |
% |
|
8.0 |
% |
|
7.2 |
% |
|
0.5 |
|
|
1.3 |
|
|
| Corporate Investments and other |
(4.2 |
%) |
|
(6.1 |
%) |
|
(9.4 |
%) |
|
1.9 |
|
|
5.2 |
|
|
| Total segment operating profit margin |
12.3 |
% |
|
11.3 |
% |
|
12.8 |
% |
|
1.0 |
|
|
(0.5 |
) |
|
| HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES |
||||||||||||
| Calculation of Diluted Net Earnings Per Share |
||||||||||||
| (Unaudited) |
||||||||||||
|
|
|
|
||||||||||
|
|
|
For the three months ended |
||||||||||
|
|
|
January 31, 2024 |
|
October 31, 2023 |
|
January 31, 2023 |
||||||
|
|
|
In millions, except per share amounts |
||||||||||
| Numerator: |
|
|
|
|
|
|||||||
| GAAP net earnings |
$ |
387 |
|
|
$ |
642 |
|
|
$ |
501 |
|
|
| Non-GAAP net earnings |
$ |
638 |
|
|
$ |
680 |
|
|
$ |
828 |
|
|
|
|
|
|
|
|
|
|||||||
| Denominator: |
|
|
|
|
|
|||||||
| Weighted-average shares used to compute basic net earnings per share |
|
1,301 |
|
|
|
1,295 |
|
|
|
1,298 |
|
|
| Dilutive effect of employee stock plans |
|
15 |
|
|
|
20 |
|
|
|
17 |
|
|
| Weighted-average shares used to compute diluted net earnings per share |
|
1,316 |
|
|
|
1,315 |
|
|
|
1,315 |
|
|
|
|
|
|
|
|
|
|||||||
| GAAP Net Earnings Per Share |
|
|
|
|
|
|||||||
| Basic |
$ |
0.30 |
|
|
$ |
0.50 |
|
|
$ |
0.39 |
|
|
| Diluted |
$ |
0.29 |
|
|
$ |
0.49 |
|
|
$ |
0.38 |
|
|
|
|
|
|
|
|
|
|||||||
| Non-GAAP Net Earnings Per Share |
|
|
|
|
|
|||||||
| Basic |
$ |
0.49 |
|
|
$ |
0.53 |
|
|
$ |
0.64 |
|
|
| Diluted |
$ |
0.48 |
|
|
$ |
0.52 |
|
|
$ |
0.63 |
|
|
| ________________ | |||
| (1) |
Interest and other, net includes tax indemnification and other adjustments, non-service net periodic benefit cost, and interest and other, net. |
||
|
|
|
||
| (2) |
For the three months ended January 31, 2024, includes the equity in earnings from H3C equity method investment and all periods include the amortization of the basis difference in the Company’s investment. |
||
|
|
|
||
| (3) |
Other adjustments includes non-service net periodic benefit cost and tax indemnification and other adjustments. |
||
|
|
|
||
| (4) |
As previously disclosed, effective as of the beginning of the first quarter of fiscal 2024, in order to align the segment financial reporting more closely with its business structure, the Company established two new reportable segments, Hybrid Cloud and Server. Hybrid Cloud includes the historical Storage segment, HPE GreenLake Flex Solutions (which provides flexible as-a-service IT infrastructure through the HPE GreenLake edge-to-cloud platform and was previously reported under the Compute and the High Performance Computing & Artificial Intelligence ("HPC & AI") segments), Private Cloud, and Software (previously reported under the Corporate Investments and Other segment). The Server segment combines the previously separately reported Compute and HPC & AI segments, with adjustments for certain product lines that are now reported in Hybrid Cloud. Additionally, certain products and services previously reported in the financial results for the HPC & AI segment were moved to be reported in the Hybrid Cloud segment, and the Athonet business and certain components of the Communications and Media Solutions business, both previously reported in the financial results for Corporate Investments and Other, moved to be reported in the Intelligent Edge segment. |
||
|
|
|||
| As a result, the Company’s new organizational structure consists of the following segments: (i) Server; (ii) Hybrid Cloud; (iii) Intelligent Edge; (iv) Financial Services; and (v) Corporate Investments and Other. The Company is reporting under this re-aligned segment structure beginning with the results of the first quarter of fiscal 2024. |
|||
|
|
|||
| The Company has reflected these changes to its segment information retrospectively to the earliest period presented, which primarily resulted in the realignment of net revenue and operating profit for each of the segments as described above. These changes had no impact on Hewlett Packard Enterprise’s previously reported consolidated net revenue, net earnings, net earnings per share or total assets. |
|||
