Hewlett Packard Enterprise Company (NYSE:HPE) Q1 2018 Earnings Conference Call - Final Transcript

Feb 22, 2018 • 04:30 pm ET


Hewlett Packard Enterprise Company (NYSE:HPE) Q1 2018 Earnings Conference Call - Final Transcript


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Good afternoon. And welcome to the First Quarter Fiscal Year 2018 Hewlett Packard Enterprise Earnings Conference Call. My name is Denise, and I will 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.

Andrew Simanek

Good afternoon. I am Andy Simanek, Head of Investor Relations for Hewlett Packard Enterprise. And I would like to welcome you to our fiscal 2018 first quarter earnings conference call with Antonio Neri, 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 Antonio, 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. (Forward-Looking Cautionary Statements)

Finally, for financial information that has been expressed on a non-GAAP basis, we have provided reconciliations to the comparable GAAP information on our web site. Please refer to the tables and slide presentation accompanying today's earnings release on our web site for details.

With that, let me turn the call over to Antonio.

Antonio Neri

Thanks, Andy. And thanks to everyone for joining us on the call today. As you all know, February 1st marked my first day as the CEO of Hewlett Packard Enterprise. As a 23 years veteran of the Company, I am honored to take on this role and excited about the opportunities ahead.

Many of those opportunities exist, thanks to Meg Whitman's tremendous leadership during the past six and a half years. Meg set us on the current path and together we developed a strategy to take this Company well into the future. I look forward to executing on that plan and I am very grateful that Meg remains on our Board. Our strong Q1 performance is proof that we have the right strategy and improved execution.

We have good revenue growth across every business segment, continued to execute HPE Next with no disruption to the business and delivered strong shareholder return in the form of share repurchases and dividends. Overall revenue of $7.7 billion was up 11% from the prior year, driven by growth across each of our business segments.

From a macro perspective, we are seeing some improvement in market conditions and higher average unit prices, as pricing catches up to increases in DRAM costs. In addition, we have strengthened our execution across a number of fronts and are driving better attachment of core industry standard server business.

While we don't expect these rates of growth to continue given tougher compares in the second half of the year, the