Forward-looking statements
This press release contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of Hewlett Packard Enterprise may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any projections of revenue, margins, expenses, effective tax rates, net earnings, net earnings per share, cash flows, benefit plan funding, share repurchases, currency exchange rates or other financial items; statements regarding the estimated impact of the changes in U.S. tax law; any projections of the amount, timing or impact of cost savings or restructuring charges; any statements of the plans, strategies and objectives of management for future operations, including the completed separation transactions, the execution of restructuring plans and any resulting cost savings or revenue or profitability improvements; any statements concerning the expected development, performance, market share or competitive performance relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on Hewlett Packard Enterprise and its financial performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements or assumptions underlying any of the foregoing.
Risks, uncertainties and assumptions include the need to address the many challenges facing Hewlett Packard Enterprise’s businesses; the competitive pressures faced by Hewlett Packard Enterprise’s businesses; risks associated with executing Hewlett Packard Enterprise’s strategy; the impact of macroeconomic and geopolitical trends and events; the need to manage third-party suppliers and the distribution of Hewlett Packard Enterprise’s products and the delivery of Hewlett Packard Enterprise’s services effectively; the protection of Hewlett Packard Enterprise’s intellectual property assets, including intellectual property licensed from third parties; risks associated with Hewlett Packard Enterprise’s international operations; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by Hewlett Packard Enterprise and its suppliers, customers and partners; the hiring and retention of key employees; integration and other risks associated with business combination and investment transactions; the execution, timing and results of any transformation or restructuring plans, including estimates and assumptions related to the cost and the anticipated benefits of implementing the transformation and restructuring plans; the effects of the U.S. Tax Cuts and Jobs Act and related guidance and regulations that may be implemented; the resolution of pending investigations, claims and disputes; and other risks that are described in Hewlett Packard Enterprise’s Annual Report on Form 10-K for the fiscal year ended October 31, 2017 and subsequent Quarterly Reports on Form 10-Q.
As in prior periods, the financial information set forth in this press release, including tax-related items, reflects estimates based on information available at this time. While Hewlett Packard Enterprise believes these estimates to be reasonable, these amounts could differ materially from reported amounts in the Hewlett Packard Enterprise Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2018. Hewlett Packard Enterprise assumes no obligation and does not intend to update these forward-looking statements.
|
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (In millions, except per share amounts) | |||||||||||
| Three months ended | |||||||||||
|
April 30,
2018 |
January 31,
2018 |
April 30,
2017 | |||||||||
| Net revenue | $ | 7,468 | $ | 7,674 | $ | 6,808 | |||||
| Costs and expenses: | |||||||||||
| Cost of sales | 5,196 | 5,491 | 4,799 | ||||||||
| Research and development | 402 | 388 | 376 | ||||||||
| Selling, general and administrative | 1,227 | 1,202 | 1,229 | ||||||||
| Amortization of intangible assets | 72 | 78 | 72 | ||||||||
| Restructuring charges | 9 | 3 | 69 | ||||||||
| Transformation costs(a) | 123 | 245 | — | ||||||||
| Acquisition and other related charges | 16 | 30 | 50 | ||||||||
| Separation costs | 26 | (24 | ) | 30 | |||||||
| Defined benefit plan settlement charges and remeasurement (benefit)(b) | — | — | (12 | ) | |||||||
| Total costs and expenses | 7,071 | 7,413 | 6,613 | ||||||||
| Earnings from continuing operations | 397 | 261 | 195 | ||||||||
| Interest and other, net | (78 | ) | (21 | ) | (86 | ) | |||||
| Tax indemnification adjustments (c) | (425 | ) | (919 | ) | 7 | ||||||
| (Loss) earnings from equity interests | (10 | ) | 22 | (3 | ) | ||||||
| (Loss) earnings from continuing operations before taxes | (116 | ) | (657 | ) | 113 | ||||||
| Benefit (provision) for taxes (d) | 966 | 2,139 | (591 | ) | |||||||
| Net earnings (loss) from continuing operations | 850 | 1,482 | (478 | ) | |||||||
| Net loss from discontinued operations | (72 | ) | (46 | ) | (134 | ) | |||||
| Net earnings (loss) | $ | 778 | $ | 1,436 | $ | (612 | ) | ||||
| Net earnings (loss) per share: | |||||||||||
| Basic | |||||||||||
| Continuing operations | $ | 0.55 | $ | 0.93 | $ | (0.29 | ) | ||||
| Discontinued operations | (0.05 | ) | (0.03 | ) | (0.08 | ) | |||||
| Total basic net earnings (loss) per share | $ | 0.50 | $ | 0.90 | $ | (0.37 | ) | ||||
| Diluted | |||||||||||
| Continuing operations | $ | 0.54 | $ | 0.92 | $ | (0.29 | ) | ||||
| Discontinued operations | (0.05 | ) | (0.03 | ) | (0.08 | ) | |||||
| Total diluted net earnings (loss) per share | $ | 0.49 | $ | 0.89 | $ | (0.37 | ) | ||||
| Cash dividends declared per share | $ | 0.1125 | $ | 0.1500 | $ | 0.0650 | |||||
| Weighted-average shares used to compute net earnings (loss) per share: | |||||||||||
| Basic | 1,552 | 1,591 | 1,658 | ||||||||
| Diluted | 1,582 | 1,619 | 1,658 | ||||||||
- Represents amounts in connection with the HPE Next initiative and primarily includes costs related to labor and non-labor restructuring, program management and IT charges, partially offset by the gain on sale of real estate.
