Feeds

Software carries EMC to bumper Q2

Acquisitions show their stuff

  • alert
  • submit to reddit

7 Elements of Radically Simple OS Migration

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

Best practices for enterprise data

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
VMware builds product executables on 50 Mac Minis
And goes to the Genius Bar for support
Multipath TCP speeds up the internet so much that security breaks
Black Hat research says proposed protocol will bork network probes, flummox firewalls
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Microsoft's Euro cloud darkens: US FEDS can dig into foreign servers
They're not emails, they're business records, says court
Microsoft says 'weird things' can happen during Windows Server 2003 migrations
Fix coming for bug that makes Kerberos croak when you run two domain controllers
Cisco says network virtualisation won't pay off everywhere
Another sign of strain in the Borg/VMware relationship?
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?