Hewlett Packard Enterprise (HPE) today announced its earnings for its first quarter, which ended Jan. 31. The company’s revenue was $11.4 billion, down 10 percent compared to last year and significantly lower than Wall Street analysts’ prediction of $12.07 billion, sending HPE stock down 6 percent in after-hours trading.

HPE’s Enterprise Group, which accounts for more than half of the company's sales, saw revenues fall 12 percent year-over-year, to $6.3 billion.

This decrease in its Enterprise Group’s revenue — especially its server revenue — is contributing to the company’s overall revenue decline, company officials said on a conference call with analysts today. Foreign exchange rates with the euro and yen are also having a negative impact on overall revenues, officials said.

The company’s corporate customers are increasingly turning to cloud services from companies like Amazon Web Services (AWS) and Microsoft Azure instead of building more data centers and filling them with servers, The Wall Street Journal noted today.

However, HPE is hoping recent acquisitions will help it expand into new markets, officials said. The acquisition of SimpliVity for $650 million, which closed Friday, is expected help with HPE’s hyperconverged infrastructure portfolio, and the acquisition of Niara is also expected to help the company’s move into Internet of Things (IoT) security.

HPE's first-quarter non-GAAP diluted earnings per share were $0.45, in line with its previously guided range of $0.42 to $0.46 per share.

For its second quarter, HPE estimates non-GAAP earnings per share to be in the range of $0.41 to $0.45.