Hewlett Packard Enterprise Co. shares fell 3% in after-hours trading Tuesday after the technology giant reported first-quarter revenue that did not meet Wall Street estimates.

HPE HPE, -2.33%  reported net income of $333 million, or 25 cents a share, in the quarter, compared with net income of $177 million, or 13 cents a share, in the year-ago first quarter.

Revenue dipped nearly 9% to $6.95 billion, from $7.55 billion a year ago.

Analysts surveyed by FactSet had expected net income of 24 cents a share on sales of $7.21 billion.

In a phone interview shortly after the results were released, HPE Chief Financial Officer Tarek Robbiati highlighted gains in intelligent-edge computing (up 2% year-over-year to $720 million) and operating profit margin for its storage business (up to 18%). But he blamed a 16% year-over-year decline in compute revenue ($3 billion) to macroeconomic factors, supply-chain disruption, and the coronavirus.

HPE, which provided more financial detail for its business segments, said its storage business fell 8% to $1.25 billion.

The performance of HPE’s server business continues to intrigue Wall Street. Barclays Capital Inc. analyst Tim Long expected server revenue to decline 5% to $3.2 billion year-over-year and be flat sequentially. “Given Dell’s DELL, -1.44%  weaker server revenue for Jan-Q and tough market demand, we see some downside risk to our estimate,” Long wrote in a note Tuesday. “Near-term outlook may also be negatively impacted by Covid-19. That said, the server market in CY2020 seems to have a good chance of recovery back to a growth mode after a tough 2019.”

HPE shares are down 22% in the past year, while the broader S&P 500 index SPX, -2.81%   is up 7.6% over the past 12 months.