Summary
Hewlett Packard Enterprise Company (HPE) has announced significant changes to its financial reporting structure, effective from the first quarter of fiscal year 2020. These organizational realignments aim to better align segment reporting with the company's current business operations. The primary change involves the dissolution of the 'Hybrid IT' reportable segment, with its constituent business units (Compute, Storage, and HPE Pointnext) being reorganized into four new, distinct reporting segments: Compute, High Performance Compute & Mission-Critical Systems (HPC & MCS), Storage, and Advisory and Professional Services (A & PS). These changes are reflected retrospectively for fiscal years 2018 and 2019, with revised segment results provided as an exhibit to this filing. Importantly, HPE states that these organizational adjustments and reporting changes have had no impact on the company's previously reported consolidated net revenue, net earnings, or earnings per share. Investors should note that while 'Hybrid IT' is no longer a distinct reportable segment, HPE will continue to provide aggregated financial data for this broader group to offer a supplementary view of its operations.
Key Highlights
- 1HPE has restructured its financial reporting segments, effective Q1 FY2020.
- 2The 'Hybrid IT' reportable segment has been eliminated.
- 3Four new financial reporting segments have been created: Compute, HPC & MCS, Storage, and A & PS.
- 4These changes aim to align reporting more closely with HPE's current business structure.
- 5Revised segment financial results for FY2018 and FY2019 are provided in Exhibit 99.1.
- 6The company explicitly states these changes have no impact on previously reported consolidated financial performance (revenue, net earnings, EPS).