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EMC's 2Q Profits Soar

The data-storage vendor says revenue climbed to $1.97 billion, while profits rose to $193 million from $82 million a year earlier.
Data-storage vendor EMC Corp. on Tuesday reported that it more than doubled net income in the second quarter and increased revenue by nearly a third.

EMC said revenue for the quarter ended June 30 was $1.97 billion, a 33% increase from $1.48 billion in the same period a year ago. Net income rose 136% to $193 million, or 8 cents a share, from $82 million, or 4 cents a share, a year ago.

Despite the solid performance, Joe Tucci, EMC's president and CEO, warned that companies are more tenacious than ever in negotiating deals.

"I continue to believe the overall market environment for storage and information management technology is rich with opportunity yet challenging, as customers continue to demand more from IT providers," Tucci said in a statement. "They are looking for broader 'best of breed' solution sets and better service and support, and they are uncompromising when it comes to improving the total cost of ownership and overall returns on their IT investments."

Nevertheless, EMC is "squarely on track" to reach its goal of a mid-teens operating margin by year's end, said Bill Teuber, EMC's executive VP and CFO.