EMC Boasts Record-Breaking Fourth Quarter, Full Year 2011

By Thor Olavsrud

Citing strong demand for its storage products, EMC Tuesday said its fourth quarter and full-year 2011 results both broke all-time records for the company for revenue, net income and earnings per share.

"EMC had a strong and record-breaking 2011," said Joe Tucci, chairman and chief executive officer of EMC (NYSE:EMC). "There's no doubt that cloud computing is completely transforming the IT industry and that Big Data promises to have a similarly profound effect on transforming the way we work and live. Our customers and partners have these transformations in their sights and are embracing EMC's vision, strategy and best-of-breed portfolio to capitalize on them and realize the full potential of their information assets."

EMC said fourth quarter consolidated revenue came in at $5.6 billion, up 14 percent from the fourth quarter of 2010. Analysts had anticipated $5.5 billion in revenue. The company said its net income increased 16 percent year-over-year to $1.07 billion, and its earnings per weighted average diluted share rose 17 percent year-over-year to $0.49. Analysts had expected earns per share of $0.46.

For the full year, EMC reported consolidated revenue of $20 billion, an increase of 18 percent year-over-year, and net income up 24 percent year-over-year to $3.4 billion. Earnings per weighted average diluted share came in at $1.51, up 20 percent year-over-year.

The company said it ended the year with $10.8 billion in cash and investments.

"In 2011, we once again executed our triple play -- simultaneously taking market share, reinvesting for growth and delivering improved earnings," said David Goulden, EMC executive vice president and chief financial officer. "With this momentum, we entered 2012 exceptionally well positioned to maintain our operational excellence, execute our growth strategy and continue delivering our triple-play results. We expect to grow over two times faster than our estimate of IT spending growth to achieve 2012 consolidated revenue of $22 billion, GAAP EPS of $1.24 and non-GAAP EPS of $1.70."

Storage was one of the big drivers of EMC's fourth quarter results. The company said its Information Storage business increased revenue 12 percent year-over-year. The high-end Symmetrix storage product portfolio's revenue increased 11 percent compared with the fourth quarter of 2011, while mid-tier storage product revenue was up 24 percent year-over-year.

EMC also pointed to its EMC VNX unified storage family, which added 2,000 new customers in the fourth quarter. The Backup Recovery Systems (BRS) portfolio was a big winner as well; the combined annualized revenue run rate for EMC Data Domain and EMC Avamar in the quarter exceeded $2 billion. Not to be outdone, the Isilon portfolio doubled its revenue year-over-year.

The company also managed to grow its revenues in all its geographies. The company said its U.S. revenue reached an all-time record of $3 billion, up 16 percent year-over-year and representing 54 percent of its consolidated fourth quarter revenue. It non-US business operations grew by an average of 12 percent year-over-year. Unsurprisingly, Europe, Middle East and Africa was the slowest-growing region, with 6 percent revenue growth. Latin America and Asia Pacific and Japan both grew revenue by 26 percent year-over-year.

Looking ahead to 2012, the company expects consolidated revenues to come in at $22 billion, with operating income accounting for 24 percent of revenues. It predicted consolidated earnings per weighted average diluted share of $1.70.

Thor Olavsrud is a contributor to InternetNews.com, the news service of the IT Business Edge Network, the network for technology professionals.

This article was originally published on January 24, 2012