EMC enjoys double-digit revenue growth

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EMC has fought back against the current backdrop of a torrid economy and related doom and gloom financial announcements with its latest set of results.

The storage giant revealed third quarter revenue of $3.7 billion - a 13 per cent increase on the same period a year ago – in addition to GAAP net income of $411 million.

The company has boasted that the figures are just the latest in a long line of solid growth.

“Against the backdrop of a tough global economy, EMC delivered its 21st consecutive quarter of double-digit revenue growth and solid double-digit profit growth. These results reflect the high quality and leadership of EMC’s broad portfolio of storage, information management and security products and services, and the global reach of our direct sales force and trusted partners,” said Joe Tucci, EMC’s chairman, president and chief executive.

“Even with a challenging economic environment ahead, we remain confident and well positioned to compete effectively, continue winning business and outpace our peers in the marketplace.”

Revenue from outside of the company’s US homeland grew by 19 per cent year on year to make up almost half (47 per cent) of the quarter’s total revenue, with revenue from Europe, the Middle East and Africa (EMEA) growing by a fifth compared to 2007’s third quarter.

Specific business units also performed well, with the information storage unit growing its revenue by 11 per cent year-on-year to $2.9 billion. The RSA acquisition also bore fruits, with this security arm also growing by 11 per cent to bring home $147 million.

Some $472 million came from EMC’s majority stake in VMware, while the company’s content management and archiving business delivered $188 million.

And the company remains equally upbeat about the future as it hopes for more of the same when it comes to financials and success.

“EMC is well positioned with the financial flexibility of a strong cash position and cash flow, along with an expanding market opportunity driven by the continued growth of business and personal information. As customers deal with this information growth, while also reducing costs and improving IT efficiencies, we are confident that EMC has the best portfolio of products and services to help them succeed,” said David Goulden, EMC’s executive vice president and chief financial officer (CFO).

“We remain laser-focused on managing our cost structure, increasing customer loyalty, maximizing shareholder value and strengthening our competitive advantage to gain market share.”

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