Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Subscribe
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Subscribe
    Home IT Management
    • IT Management
    • Storage
    • Virtualization

    EMC Earnings Tick Up but Still Miss Wall Street Projections

    Written by

    Chris Preimesberger
    Published October 22, 2014
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      It might have been a bit of a smokescreen Oct. 22 when EMC chose to reveal that it had acquired most of Cisco Systems’ 35 percent stake in the VCE venture at the same time it announced its fiscal third-quarter earnings report.

      Off the top, news of acquiring additional ownership of a hot company will sit better with investors than the data storage giant’s earnings numbers, which failed to beat Wall Street projections and showed that the core business remains virtually flat, as it has for the last few financial periods.

      EMC’s stock price at midday Oct. 22 was $27.60, up about 40 cents (1.5 percent) over the previous day’s close, so the strategy worked.

      Hopkinton, Mass.-based EMC said that it will take over its joint venture on data center technology with Cisco, VCE, which is currently seeing a $2 billion annual run rate for revenue. Cisco spent $716 million in 2009 in its investment.

      “We think this will be a major growth driver for EMC,” CEO, President and Chairman Joe Tucci said during the company’s earnings call to analysts and journalists.

      Read Senior Editor Jeff Burt’s story here for more details on the acquisition.

      In EMC’s third quarter, the company earned 44 cents per stock share, compared with 40 cents during the same period a year earlier. Analysts had forecast 46 cents per share.

      Consolidated revenue—thanks mostly to its ownership in VMware, RSA Security and other non-storage properties—was up 9 percent to $6.03 billion from $5.54 billion a year ago. That figure does top the $6 billion analysts had expected.

      EMC’s Information Infrastructure revenue was up 6 percent year over year. Information Storage revenue, which had posted double-digit growth for more than 20 quarters until recently, also reported a 6 percent increase year over year.

      EMC generated $1.7 billion in operating cash flow and $1.3 billion in free cash flow in the third quarter. EMC ended the quarter with $15.4 billion in cash and investments. The company repurchased approximately $375 million worth of its common stock in the third quarter and returned approximately $240 million to shareholders via a quarterly dividend.

      “These results are evidence that our strategy and execution are working,” Tucci said. “Our strategically aligned businesses—EMC Information Infrastructure, VMware, Pivotal and RSA—are well positioned to capitalize on the massive IT market opportunity in front of us.”

      EMC will own about 90 percent of VCE (Cisco will retain 10 percent) by the end of Q4, when the deal is expected to close. A price was not disclosed. However, the Wall Street Journal reported that EMC will be paying a trivial amount for VCE, and EMC said the deal will have no material impact on its earnings this year.

      The two companies and VMware—of which EMC owns about 80 percent—launched VCE in 2009, which makes an integrated data center solution called Vblocks that included servers and networking capabilities from Cisco, storage from EMC and virtualization technology from VMware.

      Chris Preimesberger
      Chris Preimesberger
      https://www.eweek.com/author/cpreimesberger/
      Chris J. Preimesberger is Editor Emeritus of eWEEK. In his 16 years and more than 5,000 articles at eWEEK, he distinguished himself in reporting and analysis of the business use of new-gen IT in a variety of sectors, including cloud computing, data center systems, storage, edge systems, security and others. In February 2017 and September 2018, Chris was named among the 250 most influential business journalists in the world (https://richtopia.com/inspirational-people/top-250-business-journalists/) by Richtopia, a UK research firm that used analytics to compile the ranking. He has won several national and regional awards for his work, including a 2011 Folio Award for a profile (https://www.eweek.com/cloud/marc-benioff-trend-seer-and-business-socialist/) of Salesforce founder/CEO Marc Benioff--the only time he has entered the competition. Previously, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. He has been a stringer for the Associated Press since 1983 and resides in Silicon Valley.
      Linkedin Twitter

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.