HP CEO Mark Hurd is beginning to repeat himself concerning HP's storage results.
The company generally is doing well but the storage part of ESS is not, acting as a bit of a drag, due to weakness in revenues from tape and high-end drive arrays. That's been the pattern now for three quarters in a row.
According to a Baird report on HP's fy Q2 07 revenues: "Storage revenue was up 1 percent YOY with declines in tape and high-end storage (XP) offset by growth of 10 percent in mid-range storage arrays (EVA). We believe high-end has been weak in part due to a spending pause as end users were likely waiting for the recently announced XP24000 (Hitachi's new high-end storage product)."
That 1 percent growth year on year is a decline compared with the previous quarter's 3 percent year on year growth. The 10 percent growth in EVA sales is also a decline compared to the previous quarter's 18 percent growth in EVA sales.
Mark Hurd said in the results conference call: ""Weakness in tape and the high end was offset by strong performance on the midrange EVA line." It's becoming a familiar line.
In February 2007, concerning HP's fy Q1 2007 earnings, Hurd said: "Revenue storage grew 3 percent year-over-year, and while I'm pleased with the margin improvement we've seen in storage, we need to drive stronger topline results in the business. ... Weakness in tape and in the high end was offset by ongoing strong acceptance of our flagship mid-range EVA external array business where revenue grew 18 percent year-over-year."
In November 2006, concerning HP's fy Q4 2006 earnings, Hurd said: ""Revenue in Storage grew 1 percent, with growth of 11 percent in our midrange EVA offerings offset by declines in the high-end array and tape businesses. While the growth profile of our Storage business is negatively impacted by our mix toward a declining tape market, we are not happy with our Storage growth in the fourth quarter and we need to do a better job driving top line momentum in the coming year."
Robert Schultz is still interim leader of the StorageWorks business. He resigned from its leadership in January, 2007 to run a new software unit.
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