EMC Corporation has achieved all-time record quarterly consolidated revenue and record third-quarter profit. The results were also highlighted by all-time record quarterly gross margins on and strong year-over-year increases in operating margins.
Third-quarter consolidated revenue was $4.98 billion, an increase of 18 per cent compared with the year-ago quarter. Third-quarter net income attributable to EMC increased 28 per cent year over year to $606 million. The company ended the third quarter with $9.3 billion in cash and investments. EMC remains on track to exceed its full-year goal of $19.8 billion in revenue, and $1.07 earnings per share.
Joe Tucci (Chairman and CEO, EMC): EMC is at the center of the most transformative, disruptive and opportunity-rich trends in IT history – namely hybrid cloud computing and the explosion of Big Data.
David Goulden (Executive vice president and CFO, EMC): The priorities we have outlined in our financial ‘triple play’– to gain market share, invest aggressively to take full advantage of the massive opportunities at the intersection of cloud computing and Big Data, and improve profitability – continue to guide us through 2011.
Third-quarter highlights included double-digit revenue growth for EMC Information Storage business, which increased 16 per cent year over year. EMC’s high-end Symmetrix storage product portfolio increased revenue 7 per cent compared with the year-ago quarter. EMC’s portfolio of mid-tier storage products grew revenue 28 per cent year over year. Revenue from VMware, which is majority-owned by EMC, increased 32 per cent and revenue from EMC’s RSA Information Security business grew 16 per cent year over year.
EMC’s consolidated third-quarter revenue from the United States reached an all-time record of $2.7 billion, an increase of 17 per cent year over year, representing 54 per cent of consolidated third-quarter revenue. Revenue from EMC’s business operations outside of the United States reached $2.3 billion, an increase of 20 per cent year over year, representing 46 per cent of consolidated third-quarter revenue. Within this, revenue from EMC’s Asia Pacific and Japan region reached an all-time quarterly record, growing 37 per cent year over year. Revenue from EMC’s Europe, Middle East and Africa and Latin America regions increased 15 per cent and 8per cent year over year, respectively.
Business Outlook: Consolidated revenues are expected to exceed $19.8 billion for 2011. Consolidated operating income is expected to be 16 per cent to 17 per cent of revenues for 2011.
The earnings statement of EMC is available here.