Net income up 58% on year ago quarter
EMC has posted revenues of $4.1bn in the fourth quarter of 2009, an increase of 2% year over year and 17% sequentially, exceeding the company’s outlook of $4bn.
In the quarter, the company expanded gross and operating margins on a sequential basis, generated operating cash flow of $1bn and achieved quarterly free cash flow of $793m and ended the quarter with cash and investments of $9.4bn. For 2009, operating cash flow was $3.3bn and free cash flow was $2.6bn, an increase of 2% year over year.
Net income attributable to the company was $426.5m, an increase of 58% compared to the same period last year. Net income attributable to EMC increased 43% sequentially. Diluted earnings per share was $0.20, up 54% year over year.
Joe Tucci, EMC Chairman and Chief Executive Officer, said, We are well positioned to lead the industry’s newest and potentially largest wave of IT, which we and others refer to as cloud computing. As we execute on our vision for where the industry is heading, EMC’s primary focus is on helping customers safely build out their next-generation, fully virtualised data centres and lead them along the journey to private cloud computing, which offers the promise of a dramatically more efficient and effective model for delivering IT as a service.
For the fourth quarter, Information Infrastructure business comprising product and services revenue from information storage, RSA Security, and content management and archiving reached $3.5bn, an increase of 15% sequentially.
Within the Information Infrastructure business, the company’s Information Storage and Content Management and Archiving business segments achieved double-digit sequential revenue growth, the company said.
VMware, which is majority-owned by EMC, contributed fourth-quarter revenue of $607m. Revenue from the US reached $2.2bn, up 14% sequentially, and represented 53% of the total revenue. Revenue from operations outside the US reached $1.9bn, up 20% sequentially and 4% year over year.
Mr Tucci said: “Customers are signaling more comfort spending their IT budgets, which gives EMC confidence in our ability to perform well and achieve our full-year 2009 targets. We are strategically aligned with the major technology shifts and well positioned to play a pivotal role in the IT industry for the next decade.”
The company expects revenues to be $16bn and operating income to be 13% of revenues for 2010. Diluted earnings per share is expected to be $0.78 for 2010.