EMC Reports Ninth Straight Quarter of Double-Digit Earnings
EMC, nothing if not consistent in its financial reports during the last several years, on April 19 turned in its ninth consecutive quarter of double-digit, year-over-year growth in terms of revenue, net income and earnings per share.
The Hopkinton, Mass.-based corporation reported consolidated Q1 2012 revenue of $5.1 billion, up 11 percent over 2011; GAAP (generally accepted accounting practices) net income of $587 million, up 23 percent; and GAAP earnings per weighted average diluted share increased 29 percent to 27 cents per share.
CFO David Goulden told analysts on a conference call: "EMC is on track to attain a record $28 billion in consolidated revenue by 2014, which would represent compound annual revenue growth of 13 percent from 2010."
EMC's corporate ownership includes such companies as virtualization software market leader VMware, storage providers Data Domain and Isilon, big data analytics provider Greenplum, RSA Security and content management vendor Documentum.
Burgeoning sales of storage, cloud system administration software, and new-generation securityware are a few of the key drivers in EMC's steady financial success.
"We are in a time of unprecedented IT and business transformation, propelled by the benefits of cloud computing, big data and trust," EMC Chairman and Chief Executive Officer Joe Tucci said on the call. "EMC is off to a strong start to 2012 and is exceptionally well-positioned to help customers take advantage of these major transformational shifts."
In individual product categories, EMC reported strong demand for mid-tier storage products, which increased revenue 26 percent year-over-year. The company's Isilon scale-out network-attached storage business nearly doubled its revenue year-over-year, and its VNX unified storage family, backup recovery systems portfolio and Greenplum database product each delivered strong year-over-year revenue growth.
Also during the quarter, EMC's RSA Information Security business increased revenue by 19 percent, and revenue from VMware grew 25 percent.