HPE, a leading technology company, reported a three percent increase in revenue in its latest quarter, boosted by sales of artificial intelligence systems. This was a significant improvement from the previous quarter’s 14 percent drop in revenue. The company exceeded its revenue expectations, reporting $7.2 billion in revenue compared to the previous quarter’s outlook of $6.8 billion. However, profits fell to $314 million, down 24.9 percent from the previous year.
The server business unit performed well, generating $3.87 billion in revenue, an 18 percent increase from the previous year. Orders for commercial servers grew both quarter-on-quarter and year-over-year, with a notable increase in AI server revenue. AI system revenue more than doubled from the previous quarter to over $900 million.
The Intelligent Edge business unit saw a 19 percent decline to $1.1 billion, while Hybrid Cloud revenue fell 8 percent to $1.26 billion. Other investments, including financial services, saw minor increases in revenue. Antonio Neri, the Chairman and CEO of HPE, expressed optimism about the company’s growth, citing increased demand for AI systems and HPE GreenLake services.
HPE’s AI systems revenue showed promise, with cumulative orders reaching $4.6 billion. The company’s strategic focus on enterprise AI customers led to a tripling in the number of customers year-over-year. HPE’s Cray supercomputing business and expertise in liquid cooling technology gave them a competitive edge in the AI server market.
HPE’s GreenLake subscription service attracted 3,000 new customers, bringing the total to 34,000 customers. The company’s storage offerings saw a launch of over 1,000 new HPE Alletra MP Systems, marking a successful product launch. HPE is transitioning to AI-powered file storage, which is showing positive results.
The outlook for the future is optimistic, with projected revenue for the third quarter expected to be $7.6 billion, an 8.5 percent increase from the previous year. HPE expects a strong second half of the fiscal year, driven by AI systems, traditional servers, storage, networking, and HPE GreenLake services. The company’s focus on innovation and strategic growth initiatives positions them well for future success in the technology market.
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https://blocksandfiles.com/2024/06/05/hpe-smashes-quarterly-revenue-outlook-with-ai-systems-sales-boost/
