Feeds

Software carries EMC to bumper Q2

Acquisitions show their stuff

  • alert
  • submit to reddit

Remote control for virtualized desktops

EMC enjoyed one of the best quarters in recent memory for a hardware vendor, posting a 33 percent jump in revenue in its second quarter.

EMC churned out $1.97bn in revenue, which compares to $1.48bn reported in the same quarter a year ago. EMC's income also surged, rising 136 per cent to $193m on 8 cents in earnings per share. EMC's software and services businesses drove the growth with hardware chipping in solid gains as well.

"We continued to drive revenue growth, improve gross margins and increase cash flow, while improving operating income to more than 12 per cent of revenues - putting us squarely on track to reach our mid-teens operating margin goal by the end of the year," said Bill Teuber, EMC's CFO.

EMC's hardware revenue rose 16 per cent in the period with particularly strong sales of its Clariion and Celerra systems helping out. Total hardware revenue came in at $930m compared to $804m last year.

EMC's software business, however, stole the show. Software revenue rose 64 per cent to $526m, versus just $321m in the same period one year ago. But these gains don't come as much of a surprise with EMC's Documentum, Legato and VMware acquisitions all padding the bottom line.

EMC's services revenue jumped 45 per cent as well to $498m, compared to $328m last year.

The gains made by EMC surpass those of IBM, which also enjoyed strong storage sales in its second quarter. These results are good signs for the hardware industry, as it appears to be deflecting the weakness affecting software vendors. Sun Microsystems should give a clearer picture of the server market when it reports earnings later today.

EMC expects to post $2bn in revenue in the third quarter. ®

Related stories

Help the Aged Data
Rumours of Tape's death exaggerated
In the chair: VMware's Ed Bugnion
Storage users love the press and a good brand
EMC ups storage software market share
EMC measures ADIC for tape rescue

Intelligent flash storage arrays

More from The Register

next story
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
NASA launches new climate model at SC14
75 days of supercomputing later ...
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
DEATH by COMMENTS: WordPress XSS vuln is BIGGEST for YEARS
Trio of XSS turns attackers into admins
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
Why CIOs should rethink endpoint data protection in the age of mobility
Assessing trends in data protection, specifically with respect to mobile devices, BYOD, and remote employees.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.