Feeds

EMC revenues steady but profits down

Tucci a proud a father

Bridging the IT gap between rising business demands and ageing tools

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. ®

Application security programs and practises

More from The Register

next story
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
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
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
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 Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.