EMC Reports Record-Breaking Second-Quarter Net Income
Driven by strong demand from Internet-based customers, EMC Corp., provider of enterprise storage systems, software and services, today reported second-quarter net income that was a record for the company and exceeded analysts' estimates.
EMC's revenue for the second quarter was a record $1.29 billion, 36% higher than the second quarter of 1998. Net income for the quarter was a record $289 million, up 52% compared with the second quarter of 1998. Earnings per share totaled 27 cents in the quarter, compared with 18 cents in the second quarter of 1998. The mean analyst estimate was 24 cents per share.
The second quarter was the ninth consecutive quarter in which EMC achieved at least 30% year-over-year growth in both revenue and net income.
"Velocity in the 'dot com' space is like nothing we have ever seen," said an EMC spokesman. "Excite's use of EMC storage went from 0 to 30 terabytes in less than 18 months; it took Citibank six years to get up to 75 terabytes."
EMC's revenue from storage hardware rose 29% to $986 million, while sales of storage software soared 83% to $179 million. The percentage of revenue EMC derives from software has risen steadily since 1996. Software represented 14% of revenues in this year's second quarter, vs. 11.2% in all of fiscal 1998. The company expects its software sales to total $600 million to $700 million this year, up from $445 million last year.
Revenue from fibre channel-attached storage systems reached nearly $380 million in the second quarter, more than double last year's second quarter.
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