UPDATED: The company also expects IT spending to slow somewhat in 2012, meaning the growth margins will still be significant--just slightly less than in 2011.
EMC's newly refreshed
enterprise storage line, featuring 41 new products launched in the last 18
months, apparently is also refreshing the company's revenue and profit levels.
The huge storage, security
and cloud infrastructure provider continues to file impressive quarterly
reports, posting record third-quarter results Oct. 18 that included a 28 percent
jump in profits year-over-year.
Hopkinton, Mass.-based EMC
reported third-quarter consolidated revenue at $4.98 billion, an increase of 18
percent from the same period a year ago. Net income for the quarter
was $606 million.
On Track to Near $20 Billion in 2011
CFO David Goulden told
listeners during a conference call that the company expects to bring in just
slightly short of $20 billion ($19.8 billion, a record) for the 2011 calendar
Revenue from EMC's
Information Storage business increased 16 percent overall year-over-year. Revenue
from the company's high-end Symmetrix storage portfolio increased 7 percent
from the year-ago quarter, and the mid-tier storage products-led by new sales
of the VNX and VNXe arrays-grew revenue 28 percent year-over-year.
Revenue from VMware,
majority-owned by EMC, increased
, and revenue from EMC's RSA Information Security business grew
16 percent year-over-year.
Goulden said revenue from
EMC's portfolio of "big data" hardware and software packages, which
includes EMC Isilon, EMC Atmos and EMC Greenplum, more than doubled year-over-year.
Goulden also said that VCE,
the Virtual Computing Environment company formed by Cisco and EMC with
investments from VMware and Intel, is "gaining momentum as customer demand
increased for best-of-breed converged infrastructure through the Vblock
2012 Will Be Slower but Steady
EMC, like VMware said in its
quarterly report on Oct. 17, expects IT spending to slow somewhat in 2012,
meaning the growth margins will still be significant-just slightly less than in
continuing to scrutinize very carefully their IT buys," CEO and President
Joe Tucci said on the call. "Even so, we expect that IT spending in Q4
will represent a meaningful increase, but perhaps a tick below a normal Q3 to
"I have three beliefs
about 2012: First, we expect that there will be growth in global IT spending
next year, but this growth will be somewhat lower than what we are seeing this
year. Second, we are confident that interest and investment in the cloud, big
data and security will remain top IT spending priorities.
"Third, we expect EMC
to continue to gain share in our markets, therefore growing significantly
faster than the IT spending growth average."
Tucci did not address the
Oct. 17 news
that the company's partnership with Dell to resell EMC hardware has been
dissolved following a 10-year run.
Editor's note: This story was updated to correct the percentage of net profit from 32 to 28 percent.