EMC Posts 28% Hike in Q2 Profits

By Chris Preimesberger  |  Posted 2011-07-20 Print this article Print

The storage and security vendor also increased the numbers in its analysts' guidance for the year, and now expects to bring in nearly $20 billion for the first time.

EMC's storage, security and data center equipment juggernaut continues to sail right along, with the corporation posting record second-quarter results July 20 that included a 28-percent hike in profits year-over-year.

The Hopkinton, Mass.-based company also increased the numbers in its analysts' guidance for the year, and now expects to bring in nearly $20 billion for the first time.

EMC reported second-quarter consolidated revenue at $4.85 billion, an increase of 20 percent compared with the same period a year ago. The net income total for the quarter was $546 million.

"EMC's second-quarter results are further evidence that our strategy is on target and that we continue to execute our financial 'triple play' - gaining market share, investing aggressively to take full advantage of the massive opportunities at the intersection of cloud computing and Big Data, and improving profitability," EMC Executive Vice President and Chief Financial Officer David Goulden said on the earnings conference call with analysts and investors. 

Goulden said EMC now expects "to exceed 2011 consolidated revenue of $19.8 billion, GAAP EPS of $1.07 and non-GAAP EPS of $1.48." The company's consolidated GAAP net income now is expected to exceed $2.44 billion in 2011, and consolidated non-GAAP net income is expected to exceed $3.35 billion, Goulden said.

EMC's front-and-center business, data storage, increased its revenue by 19 percent in revenue year over year. The company's high-end Symmetrix product line, which includes the new VMAX, increased revenue 15 percent compared with the year-ago quarter, and EMC's portfolio of mid-tier storage products grew its revenue 27 percent year over year.

Revenue from VMware, majority-owned by EMC, increased 37 percent, and revenue from EMC's RSA Information Security business grew 13 percent year over year.

Additional second-quarter highlights included strong revenue growth for the EMC VNX unified storage and the company's backup and recovery solutions.  EMC said it saw increasing customer demand for its Big Data technologies as product revenue from EMC Isilon, EMC Atmos and EMC Greenplum each doubled year over year.

EMC stocks shares have gone up 35 percent in value during the past year. They were selling for about $27.50 in morning trading.

"EMC really hit it out of the park on this one," FBR Capital Markets analyst Daniel Ives wrote in an advisory. "They definitely have impressive momentum across all product areas. And the improved outlook is not just positive for them but speaks to an improving IT spending environment."

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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