EMC Sees Revenues Jump by 35 Percent

 
 
By Brian Fonseca  |  Posted 2004-04-15
 
 
 
Fueled by its recent acquisitions of Legato Software, Documentum Inc. and VMWare Inc., storage behemoth EMC Corp. reported on Thursday first-quarter revenue of $1.87 billion, a 35 percent jump from $1.38 billion for the same quarter one year ago.

EMCs net income for the quarter stood at $140 million. That figure is up from $35 million recorded for the first quarter of 2003, according to officials at Hopkinton, Mass., company.

"The first quarter marked EMCs highest revenue growth rate in nearly three years, measured with or without the inclusion of our recent acquisitions," Joe Tucci, EMC president and CEO, said in a statement.

Tucci offered high praise for EMCs new independent software divisions, Documentum, Legato and VMWare, saying they play pivotal roles in supporting customers march toward disk-based recovery storage offerings, interest in virtualization and heavy use of digital content.

EMC spent nearly $600 million over the course of a few months on its high-profile troika of vendor acquisitions used to significantly bolster its backup and recovery, software virtualization, and document management prowess.

Excluding any revenue gains from its three recent acquisitions, core EMC revenue enjoyed success by climbing 21 percent in the first quarter compared with the same quarter one year ago. On a combined basis, Documentum, Legato and VMWare revenue grew by more than 30 percent against their respective first quarters of 2003, EMC officials said.

In terms of its business outlook, EMC predicts consolidated revenues for the second quarter of 2004 to register somewhere between $1.950 billion and $1.975 billion.

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