Inside the first standalone financials for HP and HPE Australia

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Inside the first standalone financials for HP and HPE Australia

The Australian subsidiaries of HP and Hewlett Packard Enterprise have filed their first full-year financial results as separate entities, with HPE posting its first profit following more than half a billion dollars in losses over four years for the combined company.

The annual reports lodged with corporate regulator ASIC for the year ending 31 October 2016 revealed a $1.3 million profit for enterprise vendor HPE, and a small loss for PC and printer business HP. The businesses separated on 1 November 2015.

HPE has retained the Hewlett-Packard Enterprise listing with ASIC, while HP Inc is listed as HP PPS.

The last time the combined entity, Hewlett-Packard Australia, posted a profit was in 2011, when it reported $134 million. Since then, the company posted loss after loss with $58 million in 2012, $270 million loss for 2013, $152 million loss for 2014 and $229 million loss for the year ending 31 October 2015.

The combined entity turned over total revenue of $3.3 billion in the previous financial year.

HPE's net profit of $1.3 million for 2016 came on total revenue of $2.1 billion.

Some $1.6 billion in revenue came from services, and it is expected much of this will shift to new entity DXC Technology for the 2017 financial year. DXC is the result of a merger between HPE's Enterprise Services unit and CSC, creating a new company that launched globally this month.

The Australia and New Zealand arm of the company boasts 10,000 staff, a significant number coming from CSC's acquisition of UXC in February 2016. Some 50 percent of DXC's entire global customer base is located in the ANZ region.

HPE will continue to run a services business despite spinning off Enterprises Services with CSC. HPE has relaunched its Technology Services unit under the new name Pointnext with the intent to support customers around hybrid IT, real-time data and analytics, and mobile solutions to "de-risk clients’ digital transformation".

HPE closed 2016 with 4113 employees, 758 fewer than under the combined umbrella. HP Inc employed 383 staff in 2016.

How about HP Inc?

HP, which declined to comment when contacted by CRN, posted a net loss of $2.7 million for the year ending 31 October 2016 on a total revenue of $1.4 billion. The company is responsible for the sale, distribution and servicing of computer and printers.

Making year-on-year comparisons is difficult given the separation. Next year could also be challenging to unpick as a large part of HPE's revenue moves under DXC.

HP and HPE officially became two separate entities on 1 November 2015, a day after the 2015 financial reporting year for the company was over.

Globally, HPE has announced a number of major acquisitions so far in 2017, including the acquisition of hyperconverged vendor Simplivity for US$650 million and, most recently, the US$1 billion acquisition of all-flash storage vendor Nimble.

Both HP and HPE declined to comment when contacted by CRN.

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