EMC Reports Higher 4Q Sales, Profits - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

EMC Reports Higher 4Q Sales, Profits

EMC Corp. today reported gains in fourth-quarter revenue and profits, the company's strongest quarterly financial performance ever. The storage vendor said revenue for the quarter ended Dec. 31 grew 21% over last year to reach $1.88 billion, while net income jumped 38% from the year-ago quarter to $377 million, excluding one-time charges. Taking into account $177 million in one-time expenses related to the acquisition of Data General, earnings were $207 million for the quarter.

For the year, the company said revenue was up 24% to $6.72 billion, while annual income rose 50% to $1.18 billion.

EMC CEO Mike Ruettgers noted the higher sales came despite the pullout of Hewlett-Packard, which had been the company's largest reseller. Last year, HP replaced EMC's offering with a Hitachi product. Ruettgers says the company expects to add another 4,000 jobs in the coming year, as revenue grows another estimated 25%. EMC plans to put less emphasis on sales through equipment manufacturers and more on selling direct to companies, including Internet-related spending by dot-coms and global 2000 companies. "The real focus is to take the product directly to customers," Ruettgers says.

Despite posting earnings per share of 34 cents, beating fourth-quarter analysts' consensus estimates by 3 cents, shares in EMC were trading down 6% at $112.75 late Wednesday afternoon.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
Commentary
Gartner Forecast Sees 7.3% Shrinkage in IT Spending for 2020
Joao-Pierre S. Ruth, Senior Writer,  7/15/2020
Slideshows
10 Ways AI Is Transforming Enterprise Software
Cynthia Harvey, Freelance Journalist, InformationWeek,  7/13/2020
Commentary
IT Career Paths You May Not Have Considered
Lisa Morgan, Freelance Writer,  6/30/2020
Register for InformationWeek Newsletters
Video
Current Issue
Special Report: Why Performance Testing is Crucial Today
This special report will help enterprises determine what they should expect from performance testing solutions and how to put them to work most efficiently. Get it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll