all Antonio. much, very Hope safe hear you and are can and well. Thank all me you
summary a year the financial quarter of XXXX. of with start results I’ll fiscal our second for
As the quarter, new since we're now from performance slides our note before, in highlight quarter. to our earnings reporting segmentation. be our presentation I'll results to please Also, referencing last I've done the according
the highlights Antonio of of key quarter discussed one. slide some on this
our let slide two. financial me Now, discuss performance, starting
heavily Our global impacted by crisis. QX results the COVID-XX were
our mentioned, quarter of under Antonia operating represented COVID-XX. QX As full a
driven were disruption, and down primarily by in supply of chain Storage. Our revenues which resulted in HPC levels $X billion Compute, significantly of year-over-year, higher backlog, MCS particularly XX%
also crisis We they and pushing customers economic through saw uneven navigated the lockdown. as current out business activity demand with
stronger was capabilities segments. offsetting edge, the connectivity, from the those market areas, in pre-crisis than lower activity. campus business virtual desktop and in the remote for certain cloud At that And resulted in we're switching well-positioned solutions like decline
non-GAAP gross were Despite points the challenging down stable which backdrop, maintain by XX we managed relatively year-over-year. margins, basis to
was Our and $X.XX year-over-year. margin year-over-year operating XX% our in EPS however then was operating of X.X% non-GAAP down to non-GAAP XX% terms, down profit
to impairment the perform goodwill was was legacy Our consistent by primarily EPS GAAP continues loss This which GAAP EPS charge non-cash and to the $X.XX, impairment to of driven MCS segment, expectations. Cray business, due a business HPC million which goodwill with associated impacted with not by $XXX allocated $X.XX. net our
was quarter by build-up. flow positive operations decisive cash volumes. which profitability the world. Free a flow financing was improve $XXX opportunities inventory actions year million prior $XXX compared Taking impacted emerge to post-COVID-XX period, and the our Cash to $XXX account, was for million previous our into higher from on impacted the all and and this manage by negative million, expenses, stronger liquidity, and costs we're prudent to further taking reduced focus in
our Turning permitted, in the near-term for coming to and He some including you further of reductions today cost the leave also in places workforce, accelerate term and strategy. unpaid to measures slide X. are the medium pay outlined to across implementing, Antonio where financial we're actions long our strengthen not restrictions. mentioned hiring legally takeout profile we’re reductions and in our pay
reflect revenue to address the company, customers world. cost in announcing are our post-COVID-XX needs a to a the of ourselves we to Today, position current more as plan resilient and and prioritization environment ready optimization a
We taking growth. right to new size our have to normal, resources to and in to right remain specifically, financial and drive investments new designed cost our sustainable, profitable accelerate alignment confident drive secure is as-a-service More pivot the to sustainable, to increased right plan our segmentation that through allocate our and and long-term the strategy path growth profitable we areas, to structure and with are to support actions efficiencies our growth. our automation, the in finally, to foundation digitization
from saving will supply strategy product consolidating remote leverage evolving our chain to simplifying customer support, increased efficiencies cost from our portfolio optimization, cost new footprint. these digital go-to-market, of captured and initiatives new estate penetration marketing Overall, be and and real
through savings Having fiscal least end. and estimate by year million we it In we said implemented terms ‘XX that at fiscal of expect rate the of plan run be cost timeline, majority the next that XXXX deliver the annualized cumulative the achieve this will years. will year $XXX that, payments estimate to of achieve the cash billion funding of level $X.X savings savings, to the over of fiscal to year by of expect order In billion end ‘XX. $X between three net we
quarter move our in segmentation. slide now performance shows that X our accordance new to with in We'll the
we few points. declined hit the key Let a me segment, X%. In Intelligent Edge
increased environment demand paying on business leadership access grew even our year-over-year over growth North emphasis America, year-over-year go-to-market we we a from saw working we digits to segmentation in and campus to X America. that made showing wireless challenging XX% declined Wi-Fi the the and of North points America single due for access home, in the LAN However, X% product due switching XX% year-over-year changes in certified North are sales with our high solutions to off, growth remote midst while business
LAN in points gross bottom that wireless expanded while markets year-over-year by margins. The grew and and improving gained we Furthermore, margins XX%. margins to also XXX significantly line basis operating is share campus we profit switching both
even as digits which lower this our backlog historical declined negative rates, growth, this and conversion average Compute, lower order was to by X times In backlog double unit XX% driven revenue quarter. quarter, grew
orders ability due fulfill fulfill logistics shortages to supply with to was coronavirus ability further chain pandemic. disrupting component by Our to the our demand impacted
chain the execute we against high backlog. constraints As alleviate, to supply our expect
resulted see in In Compute, XX. book. on backlog, and an the declined as a critical against as installation expect uptick COVID and we the Similar half XX% high-performance a of but the result this in of revenues Compute revenue year, acceptance we of order account execute mission customer to delayed primarily elevated second in to systems, stronger
to integration pace is scientific actively of with Our to virus. researchers of track and Energy and involved El synergies fight COVID-XX run revenue speed at discovery Furthermore, the announced Capitan rate for access fastest record we HPC exaflops, the the COVID-related XXXX providing most of stop to the times triple-digit resources research world's the the been advance supercomputer. the world's than importantly, powerful in worldwide supercomputer, HPC exascale in FYXX remains business the has the activity fiscal United delivery powerful by today's Cray faster targets XX of ‘XX. on Department States deliver breaking Most year a to X most
to of showing Storage, Within a XX% declined services year-over-year XX% add strength in higher similar revenues to had but XX% grew as growth backlog, Compute, data, value-added year-over-year customers year-over-year. at intensity Nimble high-margin with due notable record we Services big services. highs
driven For Compute, operational services revenue units. which by in is Compute across included and declined while than HPC, X% down Storage, drop by year-over-year, less MCS year-over-year were orders X% the
Cray. services the intensity, MCS robust. growth double-digit units and the and services our side, continued positive to attach that we is sold, revenue the the sell Storage be continues be the ratio of profitability to hardware by driven HPC, which in On This of per unit with strong underlying attach demonstrates rates
In countries projects by costs due operating margins advisory in control reentry increase services, and to professional but to to combined chargeability which down helped XX% of drive X%, in significantly an improvement from levels improved X.X and we points was our an year-over-year delivery remote XX%, staff. revenue select of in with
of Services, Within return impact net the maintained and financing assets up XX% was year-over-year, GreenLake. HPE solid quarter. a this our We of Financial with terms contract supporting of XX% despite equity longer volume approximately COVID-XX again, on X% this portfolio grew quarter
class was industry. loss this which Our in best quarter X.X%, is ratio in bad debt this
impairment customers’ upcoming ability losses will continue of as to We monitor some obviously to could in liquidity pay affect quarters. closely the constraints our
level underwriting manage through losses tighten necessary crisis, We to within will can impairment remain guidelines any we of our as this our and ensure comfort.
CMS providers. momentum is momentum. in growing is EMEA investments XX% providing is XX% corporate this double-digit telco a Solutions capabilities and Our to saw us, business segment growth growing Revenue gained a Japan with X% strong quarter. showing softer included business important growing software and order strategically service We Media our Communications & to that sequentially. services improved
also XXX We margins year-over-year this basis operating quarter. expanded points by
a win strategy We our native States. recorded strategic core with XG XG win telco the carrier also multi-vendor our validates true X and first United Tier cloud with This network in solutions. integration
five our ARR report pleased to securities representing $XXX in million, ARR line XX% in with and introduced year-over-year that analysts growth at in our I'm Slide at growing I QX profile meeting October XXXX. our shows ‘XX our expectations. came
this Aruba revenue digits HPE platform year-over-year SaaS triple grow continued Central Our to quarter.
can we solutions to remain FYXX. As rate be are motion we growth growth and suite guidance of as-a-service, XX% towards ARR on our annual compounded go-to-market of offering FYXX as-a-service that consumed a XX% progress from full building focused reiterating our differentiated to
Slide six highlights earnings buybacks net per in headwinds OI&E expect year approximately fiscal contribution SAM, performance diluted million our EPS $XXX from QX with 'XX. at our reduced operating be was suspension Non-GAAP expected lower and to-date. share of our from with to $X.XX OI&E. Consistent for leverage, negative but we guidance share
margin was a was basis the year-over-year. turned inflationary points X. even QX on gross margin the XX% to as start of quarter, XX% We delivered excuse which fiscal -- down into commodities at costs XX year Commodity tailwind supply-demand more environment this Turning margin me, gross slide gross to non-GAAP 'XX in volumes of a which down, the were quarter. of
to down COVID-XX to year-over-year. a impact. size the to result X. fiscal the as business QX right 'XX year revenue reflect Non-GAAP income margin facing XX% of was the operating This clearly Moving operating non-GAAP are our was demonstrates of we X.X% new in profile slide and imperative
Turning X. slide to
heavily $XXX for by million, quarter Compute Free impacted use year-over-year million from profitability businesses, $XXX and flow higher was which normal growth driven from the by financing impacted was flow was Storage reduced quarter, impacted than of working operations were capital. which volumes. the this cash a cash by Our and
quarter quarter. cycle in inventory triggered from X this in cash prior than days Higher XX minus and build-up a our to normal reduction the resulting minus days conversion backlog
improve the and We backlog expect year reduce rest constraints both as cycle supply our to us conversion chain inventory high execute cash alleviate, which of the levels. help we through our the against of
spend slide is a sheet balance of a moment which in Now, this the on moving credit strength rating, our environment. want competitive on I to and to grade investment advantage XX,
cash of XXXX in at As successfully senior end, approximately of notes cash of $X.X billion April $X.XX billion capital. had cost our equivalents, April in a XXth, and having we quarter raised low
We undrawn also $X.XX have billion our an of credit facility revolving at disposal.
So, We $XX to rating, our April in total, investment the committed maintaining approximately was agencies of liquidity. XXXX. we which remain by million have rating reaffirmed in grade
times Bottom-line, and during we position invest credit our strong cash support business. to have ample and a uncertain in available these
you this We $XXX capital But dividend in returned for QX $XXX takeaways to XX. recap liquidity on for In to and worth we million dividend cash decision we shares me key and in quarter we the is of before in April, on that, payment suspend of repurchased shareholders QX, share repurchases it's Let couple form the slide a payable environment the a Subsequently, I in in current spending minutes million paramount our do dividends. announced buybacks of of $XXX July. XXXX, for light paid the In million. April of ‘XX, share took our importance. regular where allocation.
let key this for takeaway Finally, quarter. summarize you the me
fiscal impacted Our and we’re side. results QX under crisis demand the full heavily of and both on crisis, the supply represent the a COVID-XX by operating quarter
we As post-COVID actions in position long-term ourselves environment optimization to enacted and prioritization a a have result, the current plans world. and company as more to a reflect resilient and cost revenue short-term
actions and key grade secure growth. we financial but not us to have growth flexibility that investment current to approximately to right and the sheet right remain taking path our sustainable, support balance initiatives. confident rating Our the our in invest $XX and of are storm, foundation only the profitable gives robust We credit liquidity to billion with continue weather to strategy
outlook. and on turning testing been does. scenarios running our Now, began, the Since various everybody we've to based like model crisis assumptions, else just stress
and the range year. recovery, a the outcomes for and Given rate the possible the of uncertainty the of of the wide there's duration the of shape level crisis around
filing XXXX withdrew guidance, not providing fiscal consistent being different we our year cost steps XXXX with We fiscal financial be the our will X, prepared plan, so our XXXX where optimization with we prioritization April decisive that the QX for have and taken prudent we guidance. any year latest uncertainty Due the and or X-K are outcomes. and to
Now Antonio? with and me to that, for hand up let it questions. Antonio open over
