HPE is closing out its 2021 fiscal year but expects that supply chain problems will persist for at least another half a year. CFO Tarek Robbiati said that HP continues to navigate ever-worsening industry-wide supply chain problems.
Robbiati said that materials are in short supply as logistics costs go up. The expectation by the company is that the supply chain issues will continue for another six months before there’s any relief.
Even with this problem front and centre, the company expects to end the fiscal year with an even higher backlog than it did at the beginning of the fourth quarter.
Robbiati added that the demand environment is also more robust, with firm orders in Q4 across every segment, giving the company great momentum throughout the next fiscal year. He also said that HPE’s edge-to-cloud strategy is delivering increasingly recurring revenue growth at higher margins.
In the fiscal year 2022, HPE thinks its revenue growth will be 3 or 4% in constant currency and non-GAAP operating profit growth of approximately 10 to 15% year over year.
The expectation is that non-GAAP diluted net earnings per share will reach $1.96-$2.10.
HPE CEO Antonio Neri said during the meeting that the IT industry is experiencing mega-trends that include the rise of data at the edge, the need to extract value out of data quickly, and a mandate to make every experience a cloud experience.
Neri said that cutting across every trend mentioned is a shift in how enterprises consume technology, opting for a ‘pay for what you use’ approach.
HPE continues its shift towards its aggressive ‘as-a-service’ approach for everything and expects that its as-a-service revenues should reach $2.3 billion by the fiscal year 2024.