Revenue and profit both up despite worries over IT spending
EMC has posted record second quarter profits thanks to increased sales of its high-end storage products as well ass the general industry shift to cloud computing. Revenue also surged during the quarter.
In total EMC recorded revenue of $5.31bn, up 10% from the $4.84bn recorded this quarter last year. Revenue from EMC’s high-end Symmetrix storage line climbed 3%, which is a strong recovery from the 10% decline it saw the previous quarter. Overall EMC’s Information Storage business increased revenue by 7% year over year.
According to the Wall Street Journal, the economic situation across Europe is having an impact of EMC, but not as much as feared. Revenue across the EMEA region slid 1%, the WSJ said.
"Economic headwinds in Europe are going to remain choppy at best, and we expect this to continue for a while," the WSJ quotes CEO Joe Tucci as saying. "Globally, and on the IT front, we think we are strategically well-positioned, and we have momentum."
Net income at the storage giant came in at $649.5m, up 19% from the year ago quarter.
"We are seeing a transformation in the IT industry unlike anything we have seen before. Organisations are moving quickly to adopt cloud computing and take advantage of both the efficiency and agility that comes with running IT-as-a-Service," Tucci added in a statement.
"Customers are also looking to deploy a new generation of Big Data applications to gain competitive advantage and differentiate their businesses. And they demand that all this be done in a secure and trusted way. EMC is widely recognised as a leader and driver of this transformation," he said.
EMC has recently reshuffled its leadership team, with former VMware CEO Paul Maritz moving across to the role of "technology strategist" at EMC, while Pat Gelsinger, who had been COO there, took Maritz’s place at VMware.
David Goulden, who was VP and chief financial officer at EMC, filled Gelsinger’s shoes at EMC. In a statement he said: "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."
"We have grown EMC profitably, expanded our portfolio of products and services into new markets, and established our reputation for quality and providing customers with the very best total experience in the industry. 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.
VMware, majority-owned by EMC, also announced its financial results today, showing an increase in revenue but a dip in profits. The company also announced the acquisition of network virtualisation firm Nicira.