EMC Posts 28% Hike in Q2 Profits
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."