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Hewlett Packard Enterprise Co 8-K Report, Financial Results (Feb 7, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 7, 2024
Period End
February 7, 2024
Securities
HPEHPE-PC
In the record · 2016–202610-K1010-Q338-K188

HPE filed 10 annual reports (10-K), 33 quarterly reports (10-Q) and 188 current reports (8-K) between 2016 and 2026.

  1. Restructuring8-K · Oct ’17Oct ’17
  2. Material agreement8-K · Jul ’20Jul ’20
  3. Leadership change8-K · Sep ’22Sep ’22
  4. Leadership change8-K · Jul ’26Jul ’26

01—Abstract

Summary

Summary of the 8-K filed February 7, 2024. Cited figures are marked; the original filing is the authoritative source.

On February 7, 2024, Hewlett Packard Enterprise filed an 8-K under Item 2.02 (Results of Operations and Financial Condition) to announce a retrospective recast of its segment reporting for fiscal 2023 and 2022.

Effective the start of fiscal Q1 2024, HPE reorganized its segments: it created a new Hybrid Cloud segment (combining the former Storage segment, HPE GreenLake for Compute, private cloud offerings, and HPE Software), moved certain products from High Performance Computing & AI into Compute and Hybrid Cloud, and moved Athonet and certain Communications and Media Solutions components from Corporate Investments and Other into Intelligent Edge. The filing is primarily a presentation change rather than an economic one. HPE states that consolidated net revenue, net earnings, EPS, and total assets are unaffected, and the consolidated totals in Exhibit 99.1 tie exactly to the previously reported figures (fiscal 2023 net revenue of $29,135 milliona and pre-tax earnings of $2,230 million; fiscal 2022 net revenue of $28,496 million and pre-tax earnings of $876 million).

The impact is at the segment level: fiscal 2023 Hybrid Cloud revenue is $5,493 millionb and Storage ($4,415 million) is eliminated, while Compute revenue is restated to $11,422 million from $11,436 million, and HPC & AI falls to $2,939 million from $3,913 million. For investors, the recast makes the new segment structure comparable across periods and is the basis for evaluating HPE's go-forward performance.

The notable shift is that Hybrid Cloud earned $232 millionc of pre-tax earnings in fiscal 2023 under the new definition, versus $429 million previously reported for Storage, and HPC & AI moved from roughly $47 million of pre-tax earnings to $18 million. Investors comparing historical segment figures to pre-recast numbers should use the revised data in Exhibit 99.1.

02—Key points

Key Highlights

  1. Effective fiscal Q1 2024, HPE created a new Hybrid Cloud segment that combines the former Storage segment, HPE GreenLake for Compute, private cloud solutions, and HPE Software.
  2. Products were transferred from HPC & AI to the Compute and Hybrid Cloud segments, and Athonet plus certain Communications and Media Solutions components moved from Corporate Investments and Other into Intelligent Edge.
  3. Consolidated results are unchanged: fiscal 2023 net revenue remains $29,135 million and pre-tax earnings $2,230 million; fiscal 2022 net revenue remains $28,496 million and pre-tax earnings $876 million.
  4. Fiscal 2023 Hybrid Cloud net revenue is restated to $5,493 million, and Hybrid Cloud pre-tax earnings are $232 million, replacing the previously reported Storage figures of $4,415 million and $429 million.
  5. Fiscal 2023 Intelligent Edge net revenue rises to $5,379 million from $5,204 million, and Compute revenue is essentially flat at $11,422 million versus $11,436 million.
  6. HPC & AI fiscal 2023 net revenue falls sharply to $2,939 million from $3,913 million, reflecting the transfer of products to other segments.
  7. The filing is furnished under Item 2.02 and Exhibit 99.1 is not deemed filed for Exchange Act Section 18 purposes, and the segment data in the exhibit is unaudited.

03—Questions

Frequently Asked Questions

  1. Did this 8-K change HPE's reported revenue or earnings?

    No. HPE states the changes had no impact on consolidated net revenue, net earnings, net earnings per share, or total assets. The consolidated totals in Exhibit 99.1 match the previously reported figures for fiscal 2023 and 2022. Only the allocation across segments changed.

  2. Why did HPE create a Hybrid Cloud segment?

    HPE said the reorganization aligns its segment reporting more closely with its current business structure. The new segment combines the Storage business with HPE GreenLake for Compute, private cloud solutions, and HPE Software, reflecting a strategic focus on hybrid cloud offerings.

  3. How should investors compare historical segment performance after this change?

    Investors should use the revised fiscal 2023 and 2022 segment results in Exhibit 99.1 rather than previously reported figures, since HPE recast prior periods retrospectively. Comparing old Storage results with new Hybrid Cloud results would be misleading because the segment boundaries differ.

  4. Which segments are most affected by the recast?

    HPC & AI shows the largest revenue decline, with fiscal 2023 revenue restated to $2,939 million from $3,913 million. Hybrid Cloud replaces Storage, and Intelligent Edge gains revenue from the Athonet and Communications and Media Solutions transfers. Compute changes only marginally.

04—Continue

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