EMC Q2 Report card out

NEW DELHI, INDIA: EMC Corporation reported financial results for the second quarter of 2012, marking the company’s 10th consecutive quarter of double-digit year-over-year growth for consolidated revenue, GAAP net income, and GAAP and non-GAAP EPS.  EMC expects to achieve its full-year 2012 goals for consolidated revenue, non-GAAP EPS and free cash flow, as per a press release.

Second-quarter consolidated revenue was $5.31 billion, an increase of 10 per cent compared with the year-ago quarter.  Second-quarter GAAP net income attributable to EMC increased 19 per cent year over year to $650 million.  Second-quarter GAAP earnings per weighted average diluted share increased 21 per cent year over year to $0.29.  Second-quarter non-GAAP1 earnings per weighted average diluted share were $0.39, an increase of 11 per cent year over year. 

Joe Tucci, EMC Chairman and Chief Executive Officer, said, “I am very pleased with EMC’s execution and record second-quarter financial performance.  We are seeing a transformation in the IT industry unlike anything we have seen before.  Organizations are moving quickly to adopt cloud computing and take advantage of both the efficiency and agility that comes with running IT-as-a-Service.  Customers are also looking to deploy a new generation of Big Data applications to gain competitive advantage and differentiate their businesses.  And they demand that all this be done in a secure and trusted way.  EMC is widely recognized as a leader and driver of this transformation.”

David Goulden, EMC President and Chief Operating Officer, said, “The business we have built is at the intersection of three of the most transformative waves in the history of IT — cloud computing, Big Data and trust.  We have grown EMC profitably, expanded our portfolio of products and services into new markets, and established our reputation for quality and providing customers with the very best total experience in the industry.  Looking ahead, we remain on track to deliver our ‘triple play’ — simultaneously taking market share, reinvesting for growth and delivering improved earnings — and are well positioned for our next major phase of growth.”

In the second quarter, revenue from EMC’s Information Storage business increased seven per cent year over year.  Within this, revenue from EMC’s networked storage platforms portfolio3, which includes EMC’s high-end and mid-tier storage platform products, grew seven per cent year over year.  Revenue from EMC’s high-end Symmetrix storage product portfolio increased three per cent compared with the year-ago quarter, and revenue from the company’s portfolio of mid-tier storage products4 increased 10 per cent year over year, the result of year-over-year growth across EMC’s major mid-tier product lines, as the release added.

Second-quarter highlights included continued customer demand for EMC’s Isilon scale-out NAS portfolio, VNX unified storage family, Backup Recovery Systems (BRS) portfolio, and VMAX systems family.  Second-quarter revenue from EMC’s RSA Information Security business increased 13 per cent year over year and revenue from VMware grew 22% year over year.  Finally, Vblock Converged Infrastructure Platforms from VCE — the Virtual Computing Environment Company formed by Cisco and EMC with investments from VMware and Intel — also gained traction in enterprise data centers and with cloud service providers as demand continued to show very strong growth in the second quarter.