EMC Breaks Sales and Earnings Records for Q1

Posted on April 20, 2011 By Stuart J. Johnston

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Data storage giant EMC reported record revenues for the first quarter of 2011, as well as record GAAP income, up 28 percent year-over-year, Wednesday.

In a statement, officials for Hopkinton, Mass-based EMC (NYSE: EMC) credited healthy customer demand for information infrastructure and virtual infrastructure products and services, as well as strong performances in several major international markets, including Europe, the Middle East, Africa and Asia Pacific regions, for much of the company's success.

The company said that consolidated revenue for the first quarter came in at $4.6 billion, an 18 percent jump from the same quarter last year. Meanwhile, GAAP income for the quarter grew by 28 percent year over year, bringing in some $477.1 million for the period.

Diluted GAAP earnings per share (EPS) were $0.21 -- growing 24 percent from last year, the company said. Non-GAAP income for the quarter totaled $700.4 million, up 27 percent over the first quarter of 2010, while non-GAAP EPS totaled $0.31, a gain of 19 percent over the same quarter of last year.

EMC officials said the company had $1.1 billion in operating cash flow for the quarter, with free cash flow of $857.3 million, and had a total of $9.5 billion in cash and investments at the end of the quarter.

Additionally, the company is looking towards the future with some optimism.

"We are positioned squarely at the intersection of two of the most sweeping trends in IT -- cloud computing and 'Big Data'," Joe Tucci, EMC's chairman and CEO, said in a statement.

David Goulden, EMC's CFO went further.

"Given the strong growth we saw in the quarter and the opportunity we see throughout 2011, we are now even more confident that we can meet and potentially exceed our 2011 consolidated revenue, non-GAAP EPS and free cash flow goals," Goulden's statement said.

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

EMC also saw strong sales from its newly purchased Isilon Systems storage division, Goulden added.

For the entire year, the company predicted it will bring in consolidated revenues of $19.6 billion. The company also said it expects GAAP diluted EPS for the year to hit $1.09, with non-GAAP diluted EPS to likely come to $1.46.

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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