EMC earnings strong as VMware spinoff approaches

EMC earnings strong as VMware spinoff approaches

EMC reported a 20 percent increase in second quarter net income, on a 21 percent revenue jump, driven in part by its VMware software subsidiary.

EMC has reported a 20 per cent increase in second quarter net income on a 21 per cent increase in revenue, driven in part by the success of its VMware subsidiary, a portion of which soon will be spun off in an IPO.

EMC reported net income of $US334.4 million, or $US0.16 per share on revenue of $US3.12 billion, for the three months ended June 30, compared to net income of $US279 million, or $US0.12 a share, on revenue of $US2.57 billion in the same quarter of 2006.

Contributors to EMC's results included its VMware subsidiary, a provider of virtualisation software, which reported a revenue increase of 89 per cent to $US298 million. EMC is planning to sell off 10 per cent of VMware in an IPO (initial public offering) of stock this quarter. EMC said on July 9 that VMware stock would be priced between $US23 and $US25 a share when it went on the market.

EMC also reported 12 per cent revenue growth to $US2.5 billion for its main line of business, data storage systems, services and software. It's EMC Clariion line of networked storage systems, reported double-digit growth over the year ago quarter.

Along with VMware, revenue from EMC's RSA Information Security software line grew 21 per cent year-over-year.

EMC is also flush with cash. It reported operating cash flow of $US622 million, up 59 from the year ago quarter, and free cash flow of $US422 million, an increase of 123 per cent.

EMC forecasts net income for share for all of 2007 of $US0.64 a share on revenue of $US12.7 billion.

Follow Us

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Brand Post

Show Comments
View all events