EMC reports record results for first quarter
Second consecutive quarter of record growth for EMC, strong results in all lines
EMC has posted its second consecutive quarter of record revenue, with consolidated revenue in Q1 up 23% to $3.9 billion compared to Q1 09.
Net income rose by 92% year-on-year, to reach $373 million, while the company also hit record quarterly operating cash flow of $1.3 billion and record quarterly free cash flow of $1.1 billion.
The company attributed the success to strong growth strategies for core markets. EMC's Information Infrastructure division, which includes storage, RSA security, content management and archiving business grew 22% year-on-year in product and service revenue, reaching $3.3 billion, while the Backup and Recovery Systems Division (BRS), EMC Data Domain and Avamar next-generation backup and recovery products each grew over 100% on a year-over-year basis.
Virtualization leader VMware, majority owned by EMC, contributed $632 million to EMC's balance sheet, up 34% from Q1 2009.
Joe Tucci, EMC chairman and CEO commented: "EMC is off to a strong start in 2010, turning in the best first quarter in company history with record first-quarter revenue, high double-digit profit growth and all-time record free cash flow. Our private cloud strategy and focus on four multi-billion dollar markets - each expected to experience rapid growth for many years to come - are resonating very well with customers. We are confident in our ability to lead the next major wave of IT, maintain a long-term double-digit revenue growth rate and continue to take share."
David Goulden, EMC executive vice president and chief financial officer, said: "During the first quarter, we saw customers move forward with increased confidence, focusing not only on cost cutting initiatives, but beginning new innovative projects in their traditional and virtual data centre infrastructures. This helped us clearly achieve the ‘triple play' we projected last quarter by gaining market share while investing for the future and increasing profitability. Looking ahead, we remain confident that we'll continue to execute on all three of these areas."