Feeds

EMC could be seeing bottom of the recession

Quarterly results show sequential rise

Internet Security Threat Report 2014

EMC has just announced second quarter results for this year which show a rise over the first quarter, but a drop on last year's numbers.

Beating Wall St estimates, second quarter revenues were $3.26bn, down 11 per cent year-on-year but up 3 per cent compared to the January-March quarter. Net income of $205.2m showed the same pattern, down 43 per cent on last year's equivalent figures, but a rise of 6 per cent sequentially.

Chief financial officer David Goulden said: "EMC's Information Infrastructure business achieved balanced sequential revenue growth across all major geographies and in every business unit."

EMC's Information Infrastructure business (Information Storage, RSA Security, and Content Management & Archiving) revenue for the second quarter was $2.80bn, up 5 per cent sequentially, driven by strong sequential growth of CLARiiON and Celerra storage, plus EMC's backup and recovery software, RSA security products, and EMC Global Services.

EMC announced today the successful completion of its tender offer for Data Domain stock, and now controls approximately 94.2 per cent of Data Domain shares outstanding. It expects to close the acquisition today.

For its quarter ending June 30, 2009, Data Domain achieved consolidated revenues of nearly $86m, an increase of 40 per cent compared with the year-ago period.

VMware, majority-owned by EMC, contributed second-quarter revenue of $455m - see our report here.

EMC CEO, president and chairman Joe Tucci didn't say much about basic storage hardware in his statement: "This marks another quarter of solid execution... We are focused on four of the hottest and fastest-growing areas of IT spending — next-generation fully virtualized data centers; cloud computing; virtualized desktops and clients; and next-generation backup, recovery and archive solutions."

It's quite a while since EMC was a pure-play storage vendor.

The outlook is for consolidated EMC revenues of $13.8bn in the full 2009 year. This includes $200m of revenues from Data Domain. Consolidated third-quarter revenues are expected to increase 2 to 3 per cent from the second quarter, excluding revenues from the acquisition of Data Domain, but increase 4 to 5 per cent including them.

If we assume the difference is 2 per cent, then that implies Data Domain revenues of $65.2m in the third quarter, almost $21m down on the just-completed quarter and comparing poorly with its third quarter 2008 revenues of $74.7m. But if we assume a 3 per cent Data Domain contribution to EMC in the third quarter, the result is $97.8m which is much healthier. There's not a lot of clarity here.

The expected full year 2009 EMC figure is down from 2008's revenues of $14.88bn. What we could be seeing here is a slight rise from the bottom of the recession for EMC, an interpretation borne out by results from Seagate, but not 3PAR. ONStor's failure to survive and subsequent collapse into LSI's hands also says it saw no rise in revenues in sight. Overall it's still not clear enough to decide if we are rising from the bottom or sitting on it. ®

Beginner's guide to SSL certificates

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
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?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.