Hewlett Packard Enterprise (HPE) has said the profit for the quarter ended Jan. 31, 2017 was unchanged at $267 million or $0.16 a share, when compared with the last year period. On the other hand, adjusted net income for the quarter stood at $772 million, or $0.45 a share compared with $731 million or $0.41 a share, a year ago. Revenue during the quarter dropped 10.35 percent to $11,407 million from $12,724 million in the previous year period. Gross margin for the quarter expanded 53 basis points over the previous year period to 28.92 percent. Total expenses were 95.94 percent of quarterly revenues, down from 96.98 percent for the same period last year. This has led to an improvement of 104 basis points in operating margin to 4.06 percent.
Operating income for the quarter was $463 million, compared with $384 million in the previous year period.
However, the adjusted operating income for the quarter stood at $1,055 million compared to $1,029 million in the prior year period. At the same time, adjusted operating margin improved 116 basis points in the quarter to 9.25 percent from 8.09 percent in the last year period.
“I believe HPE remains on the right track,” said Meg Whitman, President and Chief executive officer of Hewlett Packard Enterprise. “The steps we’re taking to strengthen our portfolio, streamline our organization, and build the right leadership team, are setting us up to win long into the future.”
For the second-quarter 2017, Hewlett Packard Enterprise expects diluted loss per share to be in the range of negative $0.03 to $0.01 and its adjusted diluted earnings per share to be in the range of $0.41 to $0.45.
For fiscal year 2017, Hewlett Packard Enterprise expects diluted earnings per share to be in the range of $0.60 to $0.70 and its diluted earnings per share to be in the range of $1.88 to $1.98.
Operating cash flow remains negative
Hewlett Packard Enterprise has spent $1,464 million cash to meet operating activities during the quarter as against cash outgo of $75 million in the last year period. The company has spent $1,157 million cash to meet investing activities during the quarter as against cash outgo of $692 million in the last year period. It has incurred capital expenditure of $839 million on net basis during the quarter, up 10.98 percent or $83 million from year ago period.
The company has spent $508 million cash to carry out financing activities during the quarter as against cash outgo of $570 million in the last year period.
Cash and cash equivalents stood at $9,858 million as on Jan. 31, 2017, up 15.91 percent or $1,353 million from $8,505 million on Jan. 31, 2016.
Working capital drops significantly
Hewlett Packard Enterprise has witnessed a decline in the working capital over the last year. It stood at $3,839 million as at Jan. 31, 2017, down 48.16 percent or $3,566 million from $7,405 million on Jan. 31, 2016. Current ratio was at 1.18 as on Jan. 31, 2017, down from 1.36 on Jan. 31, 2016.
Cash conversion cycle (CCC) has decreased to 19 days for the quarter from 28 days for the last year period. Days sales outstanding went up to 72 days for the quarter compared with 59 days for the same period last year.
Days inventory outstanding has decreased to 11 days for the quarter compared with 23 days for the previous year period. At the same time, days payable outstanding went up to 64 days for the quarter from 54 for the same period last year.
Debt comes down marginally
Hewlett Packard Enterprise has recorded a decline in total debt over the last one year. It stood at $15,790 million as on Jan. 31, 2017, down 2.16 percent or $349 million from $16,139 million on Jan. 31, 2016. Total debt was 20.60 percent of total assets as on Jan. 31, 2017, compared with 20.86 percent on Jan. 31, 2016. Debt to equity ratio was at 0.50 as on Jan. 31, 2017, down from 0.51 as on Jan. 31, 2016. Interest coverage ratio deteriorated to 4.82 for the quarter from 5.91 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
