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HPE NZ posts net profit in FY19 results, improving on prior year's loss

01 Apr 2020

Hewlett Packard Enterprise New Zealand has today announced the financial results for the 2019 financial year ended 31 October 2019, revealing a shift into net profit when compared to 2018, when the company experienced a net loss.

Fiscal 2019 total operational revenue was NZD$139.4 million, an increase of 16% from the prior-year period.

Fiscal 2019 gross profit was $23.5 million, increasing 27% from the prior-year period, while net profit totalled $3.6 million, a vast improvement from the prior-year period where HPE New Zealand recorded a $1.5 million net loss.

Fiscal 2019 net cash flows generating from operating activities was $8.3 million, up substantially from the prior-year period of $574,000.

Cash and cash equivalents, however, saw a drop year-on-year – fiscal 2019 recorded $6 million, where fiscal 2018 recorded $8.7 million.

Total revenue from contracts with customers for fiscal 2019 totalled $139.2 million, a 16% increase from the prior-year period of $120.3 million.

Total expenses saw almost no shift year-on-year, with fiscal 2019 showing $19.31 million compared to fiscal 2018’s $19.33 million, a decrease of a mere .07%.

HPE New Zealand did, however, spend more money on marketing in fiscal 2019 than the prior-year period; 2019 saw $1.8 million spent on marketing, a 491% increase from fiscal 2018’s marketing costs of $304,000.

Wage and salary expenses stayed mostly the same from 2018 to 2019, decreasing marginally from $13.9 million in 2018 to $13.5 million in 2019, a fall of 3%.

HPE New Zealand also saw a drastic decrease in termination benefit costs, dropping 6,700% from $2.8 million in 2018 to $41,000 in fiscal 2019.

The earnings report indicated that liabilities still outstrip assets in fiscal 2019, though by a smaller margin.

Total current assets dropped slightly year-on-year - in fiscal 2019 they totalled $37.4 million, a 7% decrease from $40 million in 2018.

However, despite still far outstripping assets, total current liabilities also fell in fiscal 2019 year-on-year, dropping from $71 million in fiscal 2018 to $64.1 million in 2019, a change of 9.2%.

The financial results come less than a month after HPE announced a suite of as-a-service software to assist in the deployment of 5G networks around the world.

The solutions, which were launched in mid-March this year, were in response to the acceleration of 5G standalone deployments around the world, with the tools designed to help telecommunications (telco) companies rapidly deploy 5G services and put them on the path to revenue growth within the emerging market.

The company’s platform-as-a-service strategy leverages a cloud-native software stack for 5G core, optimised telco core and edge infrastructure blueprints, and Wi-Fi 6 enabled services.