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

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.