EMC Reports Solid 1Q Results - 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.

Business & Finance
09:28 AM

EMC Reports Solid 1Q Results

Company's 20% sales growth bucks the trend of poor first-quarter results from other IT vendors.

EMC Corp. Tuesday reported that sales in its first quarter ended March 31 grew 20% year over year to $2.24 billion, causing earnings to soar 94% to $269.8 million or 11 cents per share. The company's results were in stark contrast to IBM, Siebel Systems, and other IT vendors that reported a sudden slowdown in sales in the first quarter.

"We, too, saw a slow February. But activity picked up nicely in March, especially in the last three weeks of the quarter, and especially in the United States," said Joe Tucci, EMC president and CEO, in a teleconference Tuesday.

Last week, IBM said its revenue grew a paltry 1% in the March quarter, excluding currency gains, and that cuts in services employees and organizational changes may follow. Earlier this month, Siebel said it expects to report a $7 million loss on sagging sales when it releases its first-quarter results April 27.

EMC reported growth across all of its product lines. Systems sales increased 15% year over year to $1.03 billion while software license and maintenance sales grew 26% to $832 million. Revenue from professional services, systems maintenance, and other services also increased 26% to $375 million during the quarter.

Sales of storage and management software, including SAN Management and StorageScope products, rose 21% to $147 million in the quarter, while data backup and archiving products from EMC's Legato and Dantz product lines increased 36% to $52 million. Sales of Documentum content-management software rose 36% to $49 million, and sales of the vendor's VMware product soared 104% to $80 million.

For the second quarter, EMC expects revenue in the range of $2.33 billion to $2.36 billion and earnings of 12 cents.

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
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
IT Careers: 10 Industries with Job Openings Right Now
Cynthia Harvey, Freelance Journalist, InformationWeek,  5/27/2020
How 5G Rollout May Benefit Businesses More than Consumers
Joao-Pierre S. Ruth, Senior Writer,  5/21/2020
IT Leadership in Education: Getting Online School Right
Jessica Davis, Senior Editor, Enterprise Apps,  5/20/2020
Register for InformationWeek Newsletters
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
White Papers
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