EMC's Q2 Profits Up 19 Percent

By Pedro Hernandez

EMC Tuesday announced that it had grown revenue in Q2 2012 by 10 percent, year-over-year, to reach $5.31 billion.

Profits also rose to $650 million, a 19 percent increase over the same period a year ago. Earnings per share jumped 21 percent to $0.29 on a GAAP basis or 11 percent and $0.39 in non-GAAP earnings.

The data storage giant also reported that operating cash flow rose 16 percent to $1.24 billion, and free cash flow hit $958 million, an increase of 36 percent.

Midrange Storage Sizzles

Revenue at EMC's Information Storage business rose 7 percent, with its midrange storage products leading the pack in terms of sales growth at 10 percent. Symmetrix, the company's enterprise storage platform, saw a 3 percent increase in revenue.

VMware, currently in the midst of a C-suite reshuffle and a $1.2 billion deal to acquire software defined network specialist Nicira, also notched big gains. VMware's revenue grew 22 percent as an increasing number of data centers adopted cloud infrastructure based IT strategies.

The company's security division, RSA Information Security, experienced a 13 percent revenue gain.

Cloud Storage and Big Data Beckon

Once again, the company credits its focus on the cloud, Big Data and security for its healthy financials.

"The business we have built is at the intersection of three of the most transformative waves in the history of IT –- cloud computing, Big Data and trust," said EMC President and COO David Goulden in a statement. "We have grown EMC profitably, expanded our portfolio of products and services into new markets," he added.

Part of that portfolio expansion can be attributed to some notable acquisitions during the quarter. In May, it snapped up SSD pure play XtremIO. The company paid a reported $430 million for the Israel-based maker of all-flash, self-tuning storage arrays.

Also in May, EMC acquired Syncplicity, a Menlo Park, Calif.-based enterprise file sharing services provider, for an undisclosed amount. The mobility buy enables EMC to make further inroads in the hot cloud computing and bring-your-own-device (BYOD) solutions markets.

Goulden added that EMC has no intention of slowing down. "Looking ahead, we remain on track to deliver our 'triple play' -– simultaneously taking market share, reinvesting for growth and delivering improved earnings -– and are well positioned for our next major phase of growth," he said.

EMC forecasts that revenues will reach $22.0 billion for 2012.

Pedro Hernandez is a contributing editor at InternetNews.com, the news service of the IT Business Edge Network, the network for technology professionals. Follow him on Twitter @ecoINSITE.

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This article was originally published on July 24, 2012