HPE reports fiscal 2017 second quarter results

• Combined net revenue of $9.9 billion includes $7.4 billion from continuing operations (Enterprise Group, HPE Financial Services and Software) and $2.5 billion associated with discontinued operations (two months of Enterprise Services)

• Future HPE (excludes Enterprise Services and Software) revenue was up 1% year-over-year, excluding Tier-1 server sales and when adjusted for divestitures and currency

• Second quarter GAAP diluted net loss per share of ($0.37), below the previously provided outlook of ($0.07) to ($0.03) per share, due to spin-merger related, non-cash tax valuation allowances and divestiture taxes
• Second quarter non-GAAP diluted net earnings per share of $0.35, within the previously provided outlook of $0.33 to $0.37 per share
• Fiscal 2017 GAAP diluted net EPS outlook updated to ($0.03) to $0.07
• Fiscal 2017 non-GAAP diluted net EPS outlook remains $1.46 to $1.56

PALO ALTO, Calif., May 31, 2017 (GLOBE NEWSWIRE) -- Hewlett Packard Enterprise (NYSE:HPE) today announced financial results for its fiscal 2017 second quarter, ended April 30, 2017, which have been recast to reflect the spin-merger of its Enterprise Services business as discontinued operations.

Second quarter net revenue from continuing operations of $7.4 billion was down 13% from the prior-year period and down 5% when adjusted for divestitures and currency.

Second quarter GAAP diluted net loss per share from continuing operations was ($0.29), down from a GAAP diluted net earnings per share (EPS) from continuing operations of $0.18 in the prior-year period. Second quarter non-GAAP diluted net EPS from continuing operations was $0.25, down from $0.33 in the prior-year period. Second quarter non-GAAP net earnings and non-GAAP diluted net EPS from continuing operations exclude after-tax costs of $903 million and $0.54 per diluted share, respectively, related to valuation allowances and divestiture taxes, separation costs, restructuring charges, amortization of intangible assets, acquisition and other related charges, tax indemnification adjustments, defined benefit plan settlement charges and remeasurement benefit, and an adjustment to earnings from equity interests.

“Despite some current headwinds, we delivered Q2 non-GAAP EPS in line with our outlook,” said Meg Whitman, President and CEO, Hewlett Packard Enterprise. “We saw strength in major components of our growth strategy, including high-performance compute, Aruba, all-flash storage and Technology Services. While we still have much more work to do, HPE’s Q2 results give me confidence that our efforts are delivering for customers and partners.”

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