EMC Extends String of Strong Quarterly Reports

By Chris Preimesberger  |  Posted 2008-01-29 Print this article Print

Dips in stock prices due to VMware's uncertain 2008 outlook can't erase EMC's strong quarterly results.

Storage infrastructure giant EMC continued its string of flush financial reports Jan. 29, showing record fourth-quarter and full-year revenue and strong year-over-year growth in profit, earnings per share and operating cash flow.

It was EMC's 18th consecutive quarter of double-digit, year-over-year revenue growth. The financial rewards were sparked by double-digit revenue growth across the company's Information Storage, Content Management and Archiving, RSA Information Security, and VMware Virtual Infrastructure business lines and its four major geographies.

One of the company's hottest subsidiaries, virtualization market leader VMware, didn't fare quite as well in the fourth quarter, even though its outlook is equally positive.

VMware's stock value suffered a huge drop from $83 to $60.73 per share in after-hours trading Jan. 28, lost about 27 percent of its paper value-or about $8 billion-in a matter of hours because it reported fourth-quarter revenues that fell short of Wall Street expectations. VMware also forecast 2008 revenue growth of 50 percent, compared to 88 percent in 2007.

In response to the VMware slide, EMC saw its own stock dip 11.5 percent on Jan. 28. EMC closed at $15.89 per share on Jan. 29, down $1.02 on the day.

But the stock problems couldn't erase the parent company's good overall quarterly report. EMC's total consolidated revenue for the fourth quarter of 2007 was a record $3.83 billion, an increase of 19 percent over the $3.21 billion reported for the fourth quarter of 2006.

During the quarter, EMC generated operating cash flow of $979 million-an increase of 50 percent compared with the same period a year ago-and free cash flow of $712 million, an increase of 78 percent year-over-year.

Total consolidated revenue for EMC's full 2007 fiscal year was a record $13.23 billion, 19 percent higher than the $11.16 billion reported for the full 2006 fiscal year.

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on Salesforce.com and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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