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Enterprise Services’ Revenue Rose in Fiscal 1Q16 for HPE

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Enterprise Group

The revenue from Hewlett-Packard Enterprise’s (HPE) Enterprise Group business rose 1% YoY (year-over-year) in fiscal 1Q16 to $7.1 billion. It rose 7% YoY on a constant currency basis. It had an operating profit of $944 million or 13.4% of the revenue. In the Enterprise Group, the server revenue fell 1% YoY, the storage revenue fell 3% YoY, the networking revenue rose 54% YoY, and the technology services revenue fell 9% YoY in fiscal 1Q16.

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Enterprise Services

The revenue from Hewlett-Packard Enterprise’s Enterprise Services business fell 6% YoY in fiscal 1Q16 to $4.7 billion. It reported an operating profit of $238 million or 5.1% of the revenue. In the Enterprise Services segment, the Infrastructure Technology Outsourcing revenue fell 8% YoY. The Application and Business Services’ revenue fell 3% YoY in fiscal 1Q16.

Software

The revenue from Hewlett-Packard Enterprise’s Software business fell 10% YoY in fiscal 1Q16 to $780 million. It rose 6% YoY on a constant currency basis. It had an operating profit of $136 million or 17.4% of the revenue. In the Software segment, the licenses’ revenue fell 6% YoY. The support revenue fell 13% YoY and the services revenue fell 8% YoY in fiscal 1Q16.

Financial services

The revenue from Hewlett-Packard Enterprise’s Financial services business fell 3% YoY in fiscal 1Q16 to $776 million. It rose 3% YoY on a constant currency basis. It had an operating profit of $100 million or 12.9% of the revenue. In this segment, the financial volume fell 4% YoY. The net portfolio of assets rose 4% YoY to $12.2 billion in fiscal 1Q16.

Hewlett-Packard Enterprise accounts for 2.3% of the First Trust ISE Cloud Computing Index ETF (SKYY). The other top holdings in this ETF include EMC (EMC), Google (GOOG), and Facebook (FB). They account for 4.1%, 4%, and 3.9%, respectively, of SKYY.

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