EMC posts 6pc increase in revenue, to buy-back $1 bn stock

BANGALORE, INDIA: Storage company EMC Corporation reported an increase of six per cent in first-quarter revenue, which was $5.39 billion, compared with the year-ago quarter.

Consolidated revenues are expected to be $23.5 billion for 2013. Consolidated GAAP operating income is expected to be 18.5 per cent of revenues for 2013 and consolidated non-GAAP operating income is expected to be 25.5 per cent of revenues for 2013. EMC expects to repurchase $1 billion of the company's common stock in 2013.

First-quarter GAAP net income attributable to EMC was $580 million and first-quarter GAAP earnings per weighted average diluted share were $0.26. Non-GAAP net income attributable to EMC was $850 million, an increase of four per cent compared with the year-ago quarter. Non-GAAP earnings per weighted average diluted share were $0.39, an increase of five per cent year-over-year.

During the first quarter, EMC increased operating cash flow and free cash flow on a year-over-year basis to $1.71 billion and $1.44 billion, respectively. First-quarter GAAP and non-GAAP gross margins grew on a year-over-year basis, and the company ended the quarter with $12 billion in cash and investments.

Joe Tucci, chairman and chief executive officer, EMC, said: "EMC' solid first-quarter financial results speak to the strength of our execution and the soundness of our strategy that offers customers greater efficiency, control, choice and agility. Our three federated businesses - EMC Information Infrastructure, VMware and Pivotal - are squarely focused on areas of IT that are expected to experience high growth over the next decade: cloud computing, Big Data and trusted IT."

EMC' consolidated first-quarter revenue from the United States increased eight per cent year-over-year to $2.8 billion, representing 53 per cent of consolidated first-quarter revenue. Revenue from EMC's business operations outside of the United States increased four per cent year-over-year to $2.6 billion and represented 47 per cent of consolidated first-quarter revenue.

Within this, on a year over year basis, revenue from EMC' Europe, Middle East and Africa region grew one per cent, revenue from EMC' Asia Pacific and Japan region increased four per cent, and revenue from EMC's Latin American region grew 27 per cent. Revenue from EMC' BRIC+13 markets increased 10 per cent year over year.

David Goulden, president and chief operating officer, EMC, said: "EMC's focus on cloud computing, Big Data and trusted IT helped drive solid revenue, non-GAAP net income and non-GAAP EPS growth in the first quarter. We believe EMC is extremely well-positioned to grow faster than the IT marketplace, produce leverage in the business and continue to innovate and evolve to capitalize on the opportunities ahead. Our first-quarter results are consistent with the full-year revenue and non-GAAP EPS outlook we provided in January, which remains unchanged. With continued steady execution, we expect that EMC will achieve our previously stated longer-term potential of more than $30 billion in revenue in 2016 with non-GAAP EPS growth outpacing revenue growth during this timeframe."

First-Quarter Highlights

First-quarter revenue from EMC' Information Storage business grew three per cent year-over-year. Highlights within this include: revenue from EMC' storage business increased 10 per cent year-over-year, and revenue from EMC' emerging storage business increased 24 per cent year-over-year.

EMC' RSA Information Security business increased revenue 12 per cent year-over-year, and EMC' Information Intelligence business returned to growth, increasing revenue seven per cent year-over-year.

 

EMC' VSPEX reference architecture solutions continued to gain momentum with rapid adoption and increasing popularity with customers and among partners who have sold just under 2,200 VSPEX solutions since their launch in April 2012, says a release.

Demand for VCE's Vblock systems also showed strong year-over-year growth in the first quarter. Finally, EMC continued to expand its Service Provider Program with first-quarter revenue from service provider partners up over 40 per cent year over year. VMware's revenue grew 13 per cent year-over-year.