Hewlett Packard Enterprise Company (NYSE:HPE) Q4 2017 Earnings Conference Call Transcript

Nov 21, 2017 • 04:30 pm ET

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Hewlett Packard Enterprise Company (NYSE:HPE) Q4 2017 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, and welcome to the Fourth Quarter 2017 Hewlett-Packard Enterprise Earnings Conference Call. My name is Austin, and I'll be your conference moderator for today's call. At this time all participants will be in listen-only mode. We will be facilitating a question-and-answer session towards the end of the conference. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes.

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

Executive
Andrew Simanek

Good afternoon. I'm Andy Simanek, Head of Investor Relations for Hewlett-Packard Enterprise, and I'd like to welcome you to our fiscal 2017 fourth quarter earnings conference call with Meg Whitman, HPE's 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 a press release and a slide presentation accompanying today's earnings release on our HPE Investor Relations web page at investors.hpe.com.

(Forward-Looking Cautionary Statements)

With that, let me turn it over to Meg.

Executive
Margaret C. Whitman

Thanks, Andy, and thanks to everyone for joining us on the call today. As you've all seen, we've just announced that I will be stepping down as CEO of HPE at the end of Q1. Antonio Neri, HPE's President, will become President and CEO and join the HP Board on February 1, 2018. I will remain a Director on HPE's Board. I've said for many years that the next leader of HPE should come from within the company, and Antonio Neri is exactly the type of leader I had in mind. Antonio is a 22-year veteran of our company who began his HP career as a customer service engineer in the EMEA call center. He's a computer engineer by training, has a deep technology background and is passionate about our customers, partners, employees and culture. The board unanimously agreed that Antonio should be my successor.

This transition is possible because of all the work we've done during the past six years to transform HP. Many of you will recall the challenges the company faced when I became CEO and will recognize how far we've come. During the first couple of years, we focused on strengthening the company across a number of metrics. We stabilized and strengthened the leadership team, improved productivity and reinvigorated the culture. We significantly improved customer satisfaction, driving NPS scores from negative, in some cases, to an industry-leading 80 for our services today. And we pivoted hard back towards partners, rebuilding our entire partner ecosystem and shifting resources to this critical go-to-market channel. We also rebuilt our balance sheet, paying off the nearly $12 billion of operating company net debt that existed when I joined the company. I'm proud that, today, HPE is exiting the year with nearly $6 billion in net cash. Most importantly, we reignited innovation