Shares of Hewlett Packard Enterprise (HPE) are slipping on Thursday despite the company beating third quarter earnings expectations. HPE CEO Antonio Neri...
) are slipping on Thursday despite the company beating third quarter earnings expectations. HPE CEO Antonio Neri sits down with Yahoo Finance Executive EditorNeri explains that HPE had"terrific" revenue growth during its third quarter. In particular, the AI business converted more revenue this quarter than its second quarter, improving its operating margins on the server side by 70 basis points year over year — the highest margins for servers in the industry, he says.
We had a horrific revenue growth, uh, in the third quarter, up 10% year over year and obviously was on the heel of a significant old book on the A I side where we book an additional $1.6 billion and we converted more revenue this quarter and the prior quarter.Number one is that despite that order conversion, we actually improve operating margins 50 basis points quarter of a quarter.
Our mix also had a very favourable traditional servers, um, mix because of the huge growth we saw on the, uh, year over year and sequential basis on the traditional servers, which Brian tell us that there is no cannibalization from the A i servers into the traditional servers. The book more than 80% of our orders and these are, you know, companies that they didnt doing, hosting or doing model training.But on the enterprise side, our order book now represents of the Total A I, uh, orders that we got in the backlog, which are actually our backlog went up quarter record.
That integration of that business, I mean, And then how does your you know, how does the financial profile of a of a company like H PE change?
Networking Business Hewlett Packard Enterprise Revenue Growth Networking Company Operating Margins Networking Side Gross Margins
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