Record revenues for EMC in Q4 and FY10
EMC sees strong financial growth off back of strategic initiatives
EMC has reported record revenues for the fourth quarter and full financial year 2010.
The company reported consolidated revenue of $17 billion for the 2010, up 21% year-on-year, and net income up 75% to $1.9 billion. For the fourth quarter, revenue was up 19% to $4.9 billion, and income was up 61% to $628.6 million, also a record.
Cash flow also hit record levels in the fourth quarter, with operating cash flow and free cash flow of $1.5 billion and $1.2 billion, which grew 50% and 54% year over year, respectively. EMC ended the quarter with $9.5 billion in cash and investments.
Joe Tucci, EMC chairman and chief executive officer, said: "EMC's performance in 2010 was the best in company history, marked by rapid growth, market share gains, financial leverage and significant investment in technology innovation. The platform for change in the IT industry has arrived with the biggest opportunity residing at the intersection of trusted cloud computing, enterprise data and ‘Big Data.' Equipped with the strongest, most distinctive product and services portfolio and strategic partners, we have never been more confident in EMC's position to lead this transformational shift to IT as a service."
The company reported strong customer demand and double-digit revenue growth for its high-end EMC Symmetrix storage product portfolio, which grew 19% from Q4 09, and for the mid-tier storage product portfolio, which grew revenue 23% year over year. Demand for backup and recovery solutions, was also high.
The RSA information security business increased revenues by 28%, while the VMware business saw revenue up 38% year-on-year. VMware reported income of $428 million for 2010, an increase of 95% from 2009.
Revenue from outside of the US accounted for 47% of EMC's business in Q4, reaching $2.3 billion, with 13% revenue growth in the EMEA region.
David Goulden, EMC executive vice president and chief financial officer, said: "In 2010 we executed our triple play impressively - simultaneously taking market share, reinvesting meaningfully in our business and delivering improved profitability. Tremendous progress on all of these objectives throughout the year puts EMC in its best financial and operational shape ever. We are in great position to continue to deliver our triple play results in 2011; continue to achieve solid double-digit revenue and profit growth, expand operating margins and grow free cash flow for the year; and further strengthen EMC's strategic position for the long term."
EMC reported that it also delivered a number of strategic initiatives in 2010 that boosted the company's technology leadership and expertise in key areas such as
enterprise data, cloud computing and ‘Big Data'; the company also invested heavily in R&D, accounting for 11% of annual consolidated 2010 revenue, and continued to make acquisitions including scale-out network attached storage specialist Isilon, data warehousing and business analytics company Greenplum, and leading enterprise governance, risk and compliance (eGRC) software provider Archer Technologies.
EMC expects to repurchase $1.5 billion of the company's stock in 2011.