Artificial IntelligenceCryptocurrencyMetaverseCybersecurityTech Forward

Hewlett Packard Enterprise Shares Fall on Quarterly Loss

May 31, 2017, 8:25 PM UTC
Hewlett Packard CEO Meg Whitman Rings NYSE Opening Bell
NEW YORK, NY - NOVEMBER 02: Meg Whitman, CEO of Hewlett Packard, gives a television interivew on the floor of the New York Stock Exchange after ringing the opening bell on November 2, 2015 in New York City. Hewlett Packard officially split into two companies, Hewlett-Packard Enterprise, focused on businesses and HP, Inc, focused on consumers. (Photo by Andrew Burton/Getty Images)
Andrew Burton—Getty Images

Hewlett Packard Enterprise on Wednesday reported a steep fall in revenue in its biggest business that sells servers, networking and data storage equipment, hurt by tepid demand, intense competition and a strong dollar.

Shares of Palo Alto, California-based HPE (HPE) fell 2.4% to $18.39 in trading after the bell.

Revenue in HPE’s enterprise group division, largely made up of its server and storage products, fell nearly 13% to $6.24 billion in the quarter ended April 30 — the steepest decline in several quarters.

Servers revenue dipped 14% to $2.99 billion, while networking revenue plunged 30%.

Under Chief Executive Meg Whitman, HPE has inked a string of deals to sharpen its focus on its hardware business that sells servers, networking and data storage equipment to companies.

HPE — created from the breakup of Hewlett-Packard in 2015 — has shrunk by divesting its technology services unit and signing a deal to sell its software division.

Last month, HPE bought data storage provider Nimble Storage Inc for $1.09 billion.

HPE’s results come following weak earnings reports from other big technology vendors including Cisco and IBM , which have faced slowing demand.

A strong dollar has eroded the value of HPE’s overseas revenue. HPE gets over 60% of its revenue from outside the United States.

The company reported a net loss of $612 million, or 37 cents per share in the second quarter ended April 30, compared to a profit of $320 million, or 18 cents per share, a year earlier.

For more about technology, watch:

Revenue from continuing operations fell nearly 13% to $7.45 billion, largely reflecting the sale of its consulting and outsourcing services business.

Get Data Sheet, Fortune’s technology newsletter.

Excluding items, the company earned 35 cents per share, in line with analysts’ average expectation, according to Thomson Reuters I/B/E/S.

HPE’s shares had climbed 8.5% this year, slightly outperforming the S&P 500 index’s 7.7% gain.