HP Inc. (NYSE:HPQ.WI) Q1 2017 Earnings Conference Call - Final Transcript

Feb 22, 2017 • 05:01 pm ET


HP Inc. (NYSE:HPQ.WI) Q1 2017 Earnings Conference Call - Final Transcript


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Good afternoon, and welcome to the First Quarter 2017 Hewlett Packard Enterprise Earnings Conference Call. My name is Denise, and I'll be your conference moderator for today's call. [Operator Instructions] We will be facilitating a question-and-answer session towards the end of the conference. [Operator Instructions]

I would now like to turn the presentation over to your host for today's call, Andy Simanek, Head of Investor Relations. Please proceed.

Andy Simanek

Good afternoon. I'm Andy Simanek, Head of Investor Relations for Hewlett Packard Enterprise. I'd like to welcome you to our fiscal 2017 first quarter earnings conference call with Meg Whitman, HPE's President and Chief Executive Officer; and Tim Stonesifer, HPE's Executive Vice President and Chief Financial Officer. Before handing the call over to Meg, let me remind you that this call is being webcast. A replay of the webcast will be made available shortly after the call for approximately one year. We posted the press release and the slide presentation accompanying today's earnings release on our HPE Investor Relations webpage at investors.hpe.com.

As always, elements of this presentation are forward-looking and are based on our best view of the world and our businesses as we see them today. For more detailed information, please see the disclaimers on the earnings materials relating to forward-looking statements that involve risks, uncertainties and assumptions. For a discussion of some of these of risks, uncertainties and assumptions, please refer to HPE's filings with the SEC, including its most recent Form 10-K. HPE assumes no obligation and does not intend to update any such forward-looking statements.

We also note that the financial information discussed on this call reflects estimates based on information available at this time and could differ materially from the amounts ultimately reported in HPE's quarter report on Form 10-Q for the fiscal quarter ended January 31, 2017. Finally, for financial information that has been expressed on a non-GAAP basis, we have provided reconciliations to the comparable GAAP information on our website.

Throughout this conference call all revenue growth rates unless noted otherwise, are presented on a year-over-year basis and beginning with fiscal year 2016 are adjusted to exclude the impact of divestitures and currency. We believe this approach helps provide a better representation of HPE's operational performance, given the significant divestitures we've recently completed, including the sale of MphasiS, 51% of our H3C business in China and TippingPoint amongst several others. Please refer to the tables and slide presentation accompanying today's earnings release on the website for details.

With that, let me turn it over to Meg.

Meg Whitman

Good afternoon, everyone. Thank you for joining us on the call today. Let's start right in. Overall, as I look back on Q1, I'd say our performance was mixed. I was very pleased with our non-GAAP net diluted EPS of $0.45, at the high end of our previously guided range. We delivered normalized free cash flow of $200 million, a $500 million improvement year-over-year. And we saw strong performance across key growth areas of the portfolio. However, we also