Led by customer demand for its high-end Symmetrix portfolio, Avamar and Data Domain product families, and VMware, EMC has reported record financial results for the second time in as many quarters with consolidated revenue for Q2 hitting $4.02 billion, an increase of 24% compared with the year-ago quarter.
According to EMC (NYSE: EMC), GAAP net income attributable to EMC increased 108% year-over-year to $426 million; and GAAP diluted earnings per share were $0.20, up 100% year-over-year. Non-GAAP net income attributable to EMC for the second quarter was $596 million, an increase of 66% compared with the year-ago quarter, and non-GAAP earnings per diluted share were $0.28, an increase of 56% year-over-year.
During the quarter, EMC achieved all-time record year-to-date operating cash flow and free cash flow of $2.1 billion and $1.6 billion, which grew 44% and 47%, respectively, compared with the year-ago period.
The company completed the quarter with $10.3 billion in cash and investments.
EMC has reported growth in several areas. Here are the Q2 highlights:
• The high-end EMC Symmetrix storage product portfolio increased 32% compared with the year-ago quarter and the EMC mid-tier storage product portfolio grew revenue 33% year-over-year.
• The combined second-quarter revenue run rate for EMC Data Domain and Avamar backup solutions exceeded the billion-dollar revenue run rate the company reported in the first quarter of 2010.
• VMware (NYSE:VMW), which is majority-owned by EMC, contributed second-quarter revenue of $673 million, increasing 48% compared with the year-ago quarter.
• Additionally, EMC’s RSA information security solutions grew revenue 18% year-over-year.
EMC consolidated second-quarter revenue from the United States reached $2.1 billion, an increase of 28% year-over-year, representing 53% of consolidated second-quarter revenue. Revenue from EMC’s business operations outside of the United States reached $1.9 billion, an increase of 19% year-over-year, representing 47% of consolidated second-quarter revenue. Within this, revenue increased 18%, 20% and 22% year-over-year, respectively, in EMC’s Europe, Middle East and Africa (EMEA); Asia Pacific and Japan (APJ); and Latin America regions.
EMC’s revised outlook
EMC also announced that it expects to exceed its previous outlook for 2010 revenue, consolidated GAAP EPS and consolidated non-GAAP EPS.
EMC’s CFO David Goulden said:
“Moving forward, we remain confident that we have the right business and operating model to continue delivering annual double-digit revenue and earnings growth over the long term.”
For 2010, EMC expects to exceed its previous outlook of $16.5 billion in revenue; $0.84 in consolidated GAAP diluted earnings per share, and $1.18 in consolidated non-GAAP diluted earnings per share, which excludes the impact of restructuring and acquisition-related charges, stock-based compensation expense, and intangible asset amortization.
More info can be found on EMC’s website.
