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EMC Unencumbered by Downturn, Reports Another Record Quarter
By: Chris Preimesberger
2008-10-22
Article Rating:    / 2
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EMC, a $23.5 billion (market cap) company, takes pride in the fact that in the 80 countries in which it does business, it has notched 21 consecutive quarters of double-digit, year-over-year revenue growth. It is the world's largest external disk storage supplier, thanks largely to the widespread sales of its Symmetrix and Clariion enterprise systems over the last 15 years.Despite the nosedive in the overall U.S.
economy during the last month of the quarter, data storage giant EMC posted yet another
exemplary financial report Oct. 22, recording its 21st consecutive quarter of
double-digit, year-over-year revenue growth.
The company did advise, however, that it does believe overall IT spending will
slow down during the next 12 to 18 months and that it expects its profit
margins to narrow.
EMCs total consolidated revenue for the third quarter of 2008 was $3.7
billion, an increase of 13 percent over the $3.3 billion reported for the third
quarter of 2007.
Third-quarter GAAP net income was $411 million. Third-quarter non-GAAP net
income was $528 million, or $0.25 per diluted share, 14 percent higher than a
year ago.
EMC's profit was 17 percent below year-ago earnings of $492.9 million, or
23 cents per share. However, last year's figures were boosted by EMC's one-time
sale of 6 million shares -- about 5 percent of the 89 percent it owned-- in virtualization software vendor VMware to Cisco Systems.
"We're all going through a little tough patch right now, but we're
certainly hoping that things won't get too, too terrible," EMC Executive
Vice President and Chief Financial Officer David Goulden told a conference call
of journalists and analysts.
"We are fortunate that we're in a business where there are quick ROIs,
and surveys show that even in tough times, our customers know that these are
areas in which they need to spend," EMC
President/CEO and Chairman Joe Tucci said
during the same call.
Even in the current volatile U.S.
macroeconomy, EMC's
prospects remain solidat
least for the short term and likely for the
longer term. Analysts report that the volume of personal and business
data continues to rocket skyward at 60 to 70 percent growth per year,
with
little or no chance of a slowdown; all that information has to be
stored
somewhere, and EMC is the world leader in storing it in external disk
drives.
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