EMC posts record Q1 revenue

EMC posts record Q1 revenue

Growth in Asia-Pacific and Japan, along with product demand, led EMC to post record Q1 revenue and higher net income

Growth in the Asia-Pacific region and Japan along with demand for VMware virtual infrastructure products and RSA security software pushed EMC first-quarter revenue to a record level and also boosted net income over the same period of last year.

The storage vendor, based in Hopkinton, Massachusetts, Tuesday posted net income of $US312.6 million, or $US0.15 per share, including a $US0.01 share tax benefit. That compares to net income of $US272.4 million or $US0.11 in the same quarter of last year. Before one-time charges, earnings per share for the most recent quarter came in at $US0.18, beating analyst estimates by $US0.05.

Revenue hit $US2.98 billion, 17 percent above the $US2.55 billion recorded in the first quarter of last year. Systems revenue, which amounted to 44 percent of total quarterly revenue, was up 6 percent, EMC said, while software license and maintenance revenue, which is 40 percent of the total was up 29 percent. Professional services, systems maintenance and other services revenue, at 16 percent of total revenue, rose 21 percent.

Double-digit revenue growth was posted in Europe, the Middle East and Africa and throughout Asia-Pacific, with revenue derived from markets outside the U.S. up 18 percent.

Company Chairman, President and CEO Joe Tucci noted changes in the executive management team for the Asia-Pacific region and Japan that put "our business in that part of the world ... back on track" with that region now the company's "fastest-growing geography."

Among EMC product lines, the VMware subsidiary was the fastest growing, with sales up 95 percent to $US256 million compared to $US131 million in the same quarter last year. That subsidiary has posted increasingly larger sales jumps in the last year. EMC recently announced that it plans to spin off about 10 percent of VMware in an IPO (initial public offering).

EMC's content management and archiving business had a more modest revenue jump, up 3 percent to $US172 million, while its RSA security division posted revenue of $US120 million, up 25 percent.

EMC (EMC) shares were up 1.1 percent, at $US14.76, in morning trading on the Nasdaq exchange.

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