Storage Titan EMC Charts Record Sales and Profits

Posted on July 20, 2011 By Stuart J. Johnston

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In a report that appeared to neither please nor displease investors, storage giant EMC posted record revenues and earnings when it posted its second quarterly results for fiscal 2011 on Tuesday.

EMC's (NYSE: EMC) consolidated revenues jumped by 20 percent over the same quarter of fiscal 2010 to $4.85 billion, while GAAP net income for the quarter came in at $546 million, an increase of 28 percent from last year's second quarter, an EMC statement said.

It was the second quarterly record in a row for the Hopkinton, Mass-based company.

Meanwhile, EMC posted non-GAAP diluted earnings per share (EPS) for the quarter of $0.35, a gain of 25 percent from the second quarter of 2010.

Additionally, the company finished its latest quarter with $9.5 billion in cash and investments, and had year-to-date cash flow of $2.2 billion as well as free cash flow of $1.6 billion, EMC's statement said.

Last quarter, EMC officials credited the company's performance on its cloud computing and "Big Data" initiatives as contributing to its record-breaking bottom line.

This quarter, company officials said much the same thing.

"Our record-setting performance during the quarter was marked by balanced growth, solid execution and significant technology innovation as customers around the world continue to embrace EMC's cloud computing and Big Data strategies," Joe Tucci, EMC's chairman and CEO, said in a statement.

The company's CFO, David Goulden, echoed those sentiments.

"EMC's second-quarter results are further evidence that our strategy is on target and that we continue to execute our financial 'triple play' -- gaining market share, investing aggressively to take full advantage of the massive opportunities at the intersection of cloud computing and Big Data, and improving profitability," Goulden said in a statement.

In light of the company's performance, officials slightly raised their guidance for the rest of the fiscal year. Whereas last quarter, the company was projecting consolidated revenues of $19.6 billion for the year, this week, it bumped that projection up to $19.8 billion, with non-GAAP diluted EPS of $1.48.

EMC's stock was largely unaffected by the earnings announcement. In mid-day trading on Wednesday, common shares were down 0.06 points at $27.33 -- not far off its 52 week high of $28.73.

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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