Sales were up at EMC during third quarter of 2014 (3Q14), the Hopkinton, Mass.-based enterprise technology provider announced today.
Revenues hit $6 billion, a 9 percent increase compared to the same year-ago quarter and in line with Wall Street analyst expectations. Earnings of $0.44 per share ($903 million), while up 10 percent year-over-year, came in below analyst estimates of $0.46.
EMC enterprise data storage business experienced a 6 percent revenue bump to $6.03 billion compared to last year. Despite the release of the company's VMAX3 arrays, high-end storage sales dipped 7 percent to $980 million. Backup and recovery sales also climbed 6 percent to reach $1.57 billion in revenue. RSA, EMC's data security unit, booked sales of $260 million during the third quarter, a 4 percent year-over-year improvement.
The Emerging Storage category, comprised of the company's flash-enabled and software-defined products (SDS), namely XtremIO, ViPR and ScaleIO, saw gains of 47 percent, year-over-year.
Pivotal, the company's cloud computing division, experienced revenue growth of 24 percent, to $60 million, the company reported. VMware notched revenue gains of 17 percent, to $1.51 billion, compared to 3Q13.
Pleased by his company's performance, CEO Joe Tucci said during a conference call that his company's bets on flash, software-defined storage and mobile device management (MDM) are paying off. "To demonstrate the potential and progress of these technology investments, in 2014, we expect combined revenue from [VMware] NSX, AirWatch, Pivotal, XtremIO, ViPR and ScaleIO to be approximately $1 billion and growing extremely rapidly," he predicted.
Tucci took the opportunity to announce the "next phase" of EMC's long-standing converged infrastructure joint venture with networking giant Cisco, VCE. "In this next phase, EMC will have a controlling interest in VCE, which will continue to operate with its own mission, charter and structure reporting directly to David Goulden [CEO of EMC Information Infrastructure]," he announced.
The move, said Tucci, "will provide VCE with the agility required to continue to lead the competitive converged infrastructure segment as well as expand the solutions which it can offer to customers."
In a statement, Goulden said EMC's third-quarter results were "in line with our expectations." The company, he claimed, "is growing faster than many of our peers because we continue to make the right strategic investments – assembling a leading portfolio of technology assets over several years – that enable customers to use cloud, mobile, Big Data and security technologies to create competitive advantage."
Pedro Hernandez is a contributing editor at InfoStor. Follow him on Twitter @ecoINSITE.