EMCs storage infrastructure juggernaut racked up its 17th consecutive quarter of double-digit top-line growth in its third-quarter earnings report issued Oct. 25.
The Hopkinton, Mass.-based company reported its highest all-time third-quarter revenue and net income of $492.9 million, a 74 percent improvement over 2006. Total consolidated revenue for the third quarter of 2007 was $3.3 billion, an increase of 17 percent over the $2.8 billion reported for the third quarter of 2006.
"Solid global execution of our strategy resulted in record third-quarter financial results," Joe Tucci, EMC chairman, president and CEO said in a statement.
"We see broad opportunities in the global marketplace, and we will continue to drive profitable growth by furthering technology integration across our portfolio, investing in research and development, and expanding into the fastest-growing global markets."
Tucci also pointed out the VMware divisions quarterly performance and the completion of the IPO (initial public offering) of approximately 10 percent of VMware.
"VMware is not only one of the fastest-growing businesses in the history of the software industry, but it has also created an entire IT category based on one of the very few game-changing technologies out there today," Tucci said.
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VMware, which makes virtual infrastructure software for industry-standard systems and is majority-owned by EMC, had third-quarter revenues of $354 million—a whopping increase of approximately 90 percent compared with the year-ago quarter.
Other highlights of the EMC earnings report:
- Data security subsidiary RSA reported that its third-quarter revenues grew 22 percent when compared with the results of the divisions constituent companies in the year-ago period, reaching $133 million in revenue.
- Third-quarter overall operating income grew faster than revenue, and free cash flow more than doubled compared with the same period a year ago.
- Year to date, the company has bought back 73 million common stock shares and returned $1.1 billion to shareholders. EMC also said it would increase its previously announced stock buyback commitment from $1 billion to $2 billion.
EMC systems revenue increased 9 percent year-over-year and represented 43 percent of total third-quarter revenue, the company reported. Software license and maintenance revenue increased 25 percent year-over-year and accounted for 41 percent of total third-quarter revenue.
Professional services, systems maintenance and other services revenue grew by 25 percent year-over-year and represented 16 percent of total third-quarter revenue, EMC officials said.
"We demonstrated crisp business and financial execution around the world with operating income growing faster than revenue and free cash flow more than doubling compared to the same period a year ago," said David Goulden, EMC executive vice president and chief financial officer.
"Based on our results year-to-date and our expectations for a solid fourth quarter, we are now very clearly on track to exceed the annual financial targets we set in January."
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