EMC's Third Quarter Earning Break Records -- Again

Posted on October 18, 2011 By Stuart J. Johnston

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Storage giant EMC did it again Tuesday when it reported that its revenues and earnings for the third quarter both broke all-time records.

In a statement released before the markets opened, officials for Hopkinton, Mass-based EMC Corporation (NYSE: EMC) said that consolidated revenues for the period came in at $4.98 billion, an increase of 18 percent over the same quarter of 2010.

Besides breaking the company's all-time record for quarterly consolidated revenues, EMC also posted record third-quarter net income and profits.

EMC brought in non-GAAP net income attributable to the company of $822 million, a gain of 27 percent year-over-year. Meanwhile, non-GAAP diluted earnings per share (EPS) came in at $0.37, up 23 percent from last year's third quarter.

Executives said that EMC's third record quarter in a row was fueled by the same drivers as the previous two previous record breakers.

"Global customer demand for our ... products and services, which led to record quarterly financial results, is clear evidence that EMC is at the center of the most transformative, disruptive and opportunity-rich trends in IT history -- namely hybrid cloud computing and the explosion of Big Data," Joe Tucci, EMC's CEO and chairman, said in a statement.

As it had in the previous sequential two quarters, the company cited strong sales of its EMC Symmetrix storage products, as well as revenue from its majority-ownership in virtualization vendor, VMware (NYSE: VMW) as partially responsible for the quarter's results.

Additionally, officials said they remain bullish on the company's prospects in the fourth quarter.

"We remain on track to exceed our full-year goal of $19.8 billion in revenue and non-GAAP EPS of $1.48," David Goulden, EMC's CFO, said in a statement.

Overall, the company's consolidated non-GAAP net income is expected to exceed $3.3 billion in 2011, excluding stock-based compensation, amortization of intangible assets, restructuring, and acquisition-related charges.

Meanwhile, non-GAAP net income attributable to EMC's non-controlling interest in VMware is expected to be $205 million for the year, the company's statement said.

EMC's stock was trading up more than 5 percent at around $23.87 late in the day Tuesday.

Stuart J. Johnston is a contributing editor at InternetNews.com, the news service of Internet.com, the network for technology professionals. Follow him on Twitter @stuartj1000.


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