Feeds

EMC delivers again with strong Q1

Software rising

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

EMC secured double-digit revenue growth in its first quarter on the back of strong software sales and well above average hardware shipments.

The storage giant, which has been on a two-year long software acquisition spree, has outpaced rivals with steady gains. The first quarter was no exception to this trend with EMC reporting revenue of $2.24bn - 20 per cent higher than the $1.87bn reported in the same period one year ago. Net income surged to $270m, which marks 93 per cent growth over the $140m in 2004.

"EMC delivered its seventh quarter in a row of double-digit revenue growth, once again extending one of the strongest and steadiest growth stories in the tech industry today," said EMC's CEO, Joe Tucci. "Solid execution and the investments we have made to broaden our product and market reach played major roles in our ability to successfully navigate through a difficult first quarter."

EMC's results were a welcome respite for the battered hardware sector. IBM last week reported poor mainframe and storage sales as part of a very disappointing first quarter. Sun Microsystems did no better during its third quarter, posting a loss in the period on lower sales.

EMC, by contrast, has boosted software sales by a large margin while keeping hardware shipments steady. It has made flashy acquisitions of companies such as Legato and VMware to bolster the software unit.

EMC's hardware revenue rose 15 per cent year-over-year to $1.03bn. The Clariion, Celerra and Centera systems had the strongest growth, EMC said. Software licenses and maintenance revenue jumped 26 per cent to $832m. Software now accounts for 37 per cent of EMC's total revenue. Tucci set a goal quite awhile back to have software account for 50 per cent of revenue. EMC's services business grew 26 per cent as well to $375m.

In the second quarter, EMC is looking for revenue between $2.33bn and $2.36bn. ®

Related stories

EMC wags new NAS giant at rivals NetApp and IBM
IBM hands over NAS duties to NetApp in mega storage tie-up
IBM sells storage software to partner Cisco

Choosing a cloud hosting partner with confidence

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Lawyers mobilise angry mob against Apple over alleged 2011 Macbook Pro crapness
We suffered 'random bouts of graphical distortion' - fanbois
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
Inside the EYE of the TORnado: From Navy spooks to Silk Road
It's hard enough to peel the onion, are you hard enough to eat the core?
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.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.