Feeds

EMC delivers again with strong Q1

Software rising

  • alert
  • submit to reddit

Build a business case: developing custom apps

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

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
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.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.