Feeds

EMC revenues steady but profits down

Tucci a proud a father

Protecting users from Firesheep and other Sidejacking attacks with SSL

EMC reported steady third quarter 2009 revenues of $3.52bn but profits fell 24 per cent compared to a year ago.

The 2008 third quarter revenue number was five per cent down on 2008's third quarter but 8 per cent up on the second 2009 quarter. Net income was $298.2m, an impressive 45 per cent higher than the second quarter but almost 25 per cent less than the year-ago quarter's $393.4m, though still beating Wall St estimates.

Notwithstanding the diminished profit, EMC CEO and chairman Joe Tucci said he was "extremely proud of the EMC and VMware people around the world who achieved these results."

CFO David Goulden said: "EMC achieved solid sequential revenue and profit growth." But he didn't mention the year-on-year comparison in his prepared remarks. The recession is still clearly affecting EMC.

EMC’s Information Infrastructure business for the third quarter, meaning Information Storage, RSA Security, and Content Management and Archiving, recorded $3.03 billion in sales, an increase of 8 per cent sequentially. The company said it was driven by good sequential growth of Symmetrix arrays with strong adoption of the new V-Max line. It also saw good business in the backup and recovery, and Celerra product areas.

EMC majority-owned VMware contributed revenue of $489m.

During the third quarter EMC bought data indexer Kazeon and FastScale, recruited Intel's Pat Gelsinger to head its storage operations, uprated Data Domain's replication and refreshed its mid-range boxes, as well as getting more closely involved with Cisco. It also introduced its Atmos compute cloud service. By EMC standards, it was just another quarter really.

EMC is betting big, really big, on virtualisation and the cloud. If these bets come off then it could resume its previous hectic growth rates, once the recession eases into recovery and recovery turns to economic growth. Not quite yet though although the recession is easing.

Tucci pointed out that EMC's "customers are signaling more comfort spending their IT budgets" and the outlook for the year has been raised over previous expectations. Consolidated EMC revenues of $4.0bn are expected for the fourth quarter with $13.9bn for the full year. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
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
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.