EMC emerges from recession doldrums
Back to square one, in the good way
EMC is emerging from the recession, with revenues back to where they were a year ago, but higher quarterly profits.
The company recorded $4.1bn revenues for its fourth 2009 quarter which was just two per cent higher than the $4.02bn recorded in 2008's last quarter. However, without increased VMware revenues - $607m compared to $514m a year ago - EMC would have recorded a very slight decrease year on year, as its own revenues of $3.5m were the same in both the final 2009 and 2008 quarters.
Net income for the quarter was $426.5m, which is a record, and 58 per cent up on the year ago quarter which saw $288m profit.
Full year revenues were $14bn, $88m down on 2008's $14.88bn. There was a larger proportional fall in 2009 net income than revenue, as full year net income was $1.1bn, $200m less than 2008's $1.3bn. The increase in profitability in the fourth quarter of 2009 was not enough to offset the lowered profitability in the other three quarters of the year.
EMC is pleased to be where it is, with fourth quarter numbers beating its own and analysts' estimates, and has an optimistic outlook; suggesting it will make $16bn this year, representing 14 per cent growth. Chief financial officer David Goulden in his prepared statement talked of "emerging from the worst global recession in company history, [and being in] the best financial and operational shape ever".
Joe Tucci, EMC's CEO and chairman, reckons EMC will make its money this year by helping customers build out virtualised data centres and head towards private cloud computing. ®