Record revenue for EMC in second quarter
EMC reports record income and revenues in Q2 2010, growth in VMware, RSA, and mid and high level storage
EMC has reported record income and revenue for the second quarter of 2010.
Posting quarterly results for Q2 2010, EMC reported GAAP net income for the quarter had doubled from the same quarter last year (up 108%) to $426 million, while consolidated revenue reached $4.02 billion, a 24% increase on the same quarter last year.
The company achieved all-time record year-to-date operating cash flow and free cash flow of $2.1 billion and $1.6 billion, which grew 44% and 47%, respectively.
Joe Tucci, EMC chairman and CEO commented: "The strength and demand that we saw during the quarter is testament to the value our customers see in our information infrastructure and virtual infrastructure solutions and the massive opportunity before us.
"The IT industry is in the midst of a major transformation to cloud computing and, ultimately, to a more agile way to consume and deliver IT. Never in our history have we had a stronger team, more compelling vision, or more innovative set of technologies, services, and partnerships. As a result, EMC is in an excellent position to lead this dramatic shift in IT and provide our customers with a clear path forward on their journey to the cloud," Tucci added.
The company reported strong growth in VMware, which it holds a majority stake in, with VMware contributing $673 million, up 48% year-on-year (17% of overall revenue). EMC's RSA information security solutions division, also increased revenue by 18% year over year.
EMC also saw strong growth in revenue from its high-end EMC Symmetrix storage and its mid-tier storage portfolios, which increased revenue by 32% and 33% respectively. For the Backup and Recovery Systems Division (BRS), the combined second-quarter revenue run rate for EMC Data Domain and Avamar backup solutions exceeded the billion-dollar revenue run rate the company reported in the first quarter of 2010.
Revenue from operations outside of the US reached $1.9 billion, up 19% year-on-year, while US revenues were up 28% to $2.1 billion.
David Goulden, EMC executive VP and chief financial officer, said: "For the second consecutive quarter, EMC once again turned a ‘triple play' by gaining market share while investing for the future and increasing profitability. With this, we also expanded gross and operating margins and generated all-time record year-to-date operating and free cash flow. Moving forward, we remain confident that we have the right business and operating model to continue delivering annual double-digit revenue and earnings growth over the long term."