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HPE reports revenue decline in Q1

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For its fiscal 2017 first quarter, ended 31 January 2017, HP Enterprise has reported net revenue of $11,4-billion, down 10% from the prior-year period and down 4% when adjusted for divestitures and currency.
First quarter GAAP diluted net earnings per share (EPS) was $0.16, up from $0.15 in the prior-year period, and above its previously provided outlook of $0.03 to $0.07. First quarter non-GAAP diluted net EPS was $0.45, up from $0.41 in the prior-year period, and near the high end of its previously provided outlook of $0.42 to $0.46.
First quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax costs of $505-million and $0.29 per diluted share, respectively, related to separation costs, restructuring charges, amortisation of intangible assets, acquisition and other related charges, an adjustment to earnings from equity interests, defined benefit plan settlement and remeasurement charges and tax indemnification adjustments.
“I believe HPE remains on the right track,” says Meg Whitman, president and CEO of Hewlett Packard Enterprise. “The steps we’re taking to strengthen our portfolio, streamline our organization, and build the right leadership team, are setting us up to win long into the future.”
Enterprise Group revenue was $6,3-billion, down 12% year over year, down 6% when adjusted for divestitures and currency, with a 12.7% operating margin. Servers revenue was down 12%, down 11% when adjusted for divestitures and currency, Storage revenue was down 13%, down 12% when adjusted for divestitures and currency, Networking revenue was down 33%, up 6% when adjusted for divestitures and currency, and Technology Services revenue was down 2%, up 4% when adjusted for divestitures and currency.
Enterprise Services revenue was $4-billion, down 11% year over year, down 6% when adjusted for divestitures and currency, with a 7% operating margin. Infrastructure Technology Outsourcing revenue was down 8%, down 7% when adjusted for divestitures and currency, and Application and Business Services revenue was down 17%, down 3% when adjusted for divestitures and currency.
Software revenue was $721-million, down 8% year over year, down 1% when adjusted for divestitures and currency, with a 21.4% operating margin. License revenue was down 9%, down 2% when adjusted for divestitures and currency, Support revenue was down 9%, down 2% when adjusted for divestitures and currency, Professional Services revenue was down 7%, down 5% when adjusted for divestitures and currency, and Software-as-a-service (SaaS) revenue was up 4%, up 6% when adjusted for divestitures and currency.
Financial Services revenue was $823-million, up 6% year over year, net portfolio assets were up 2%, and financing volume was down 10%. The business delivered an operating margin of 9,5%.