Software gains plump EMC's Q3

Buying spree pays off

By Ashlee Vance in Chicago • Get more from this author

Posted in Storage, 19th October 2004 16:06 GMT

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EMC's 2004 surge continued in the third quarter with its more than ample software business driving growth.

EMC pulled in $2bn during the period - a whopping 34 per cent more revenue than the $1.5bn reported in the same quarter last year. EMC's income jumped as well to $218m - a 37 per cent rise over last year's $159m. The biggest reason for EMC's success stems from contributions made by its software division, which has added the portfolios of Documentum, Legato and VMware over the past year.

Software license revenue surged 56 per cent. The software unit pulled in $538m compared to $345m in last year's Q3. The company's VMware subsidiary posted 200 per cent revenue growth to $61m, while EMC's core software business pulled in $351m.

The company's hardware business also boosted revenue. It reported $949m in sales, which compares to $800m last year. EMC's services revenue hit $523m compared to $341m last year. So, gains all around.

EMC doesn't look ready to slow down either. Earlier this month, it announced the purchase of backup software maker Dantz Development Corp. in a bid to boost its standing with small- to medium-sized businesses. It seems that no data backup firm is safe from EMC these days.

EMC is looking for fourth quarter revenue to come in between $2.23bn and $2.27bn. Investors rewarded the firm by sending its shares more than three per cent higher to $12.58, at the time of this report. ®