Riding the recovering economy and the corporate transition to cloud computing, EMC Wednesday reported record revenue and triple-digit earnings growth for its second quarter.
With the company positioned to offer technology for building virtualized, private cloud and public cloud systems, executives are projecting that sales for all of 2010 will grow nearly 25 percent.
For the second quarter ended June 30 EMC reported revenue of $4.02 billion, up more than 23 percent from $3.26 billion in the second quarter of 2009. Earnings grew 108 percent to $426.2 million from $205.2 million one year earlier.
In a conference call with financial analysts CEO Joe Tucci said EMC planned for an economy in which IT spending is growing, but “choppy,” and those predictions are proving true. Tucci said IT spending is forecast to increase between 3 and 5 percent this year while EMC’s addressable market will grow between 6 and 8 percent, and he said EMC is outpacing those numbers to gain market share.
Chief financial officer David Goulden, earlier in the call, predicted that EMC sales for all of 2010 would exceed $16.5 billion, a gain of more than 25 percent from $13.2 billion in 2009.
Tucci said EMC is capitalizing on the adoption of cloud computing by businesses and IT service providers. Along with the company’s mainstay data storage, management and protection products, the CEO said such offerings as EMC’s VMware virtualization software, Atmos cloud storage service and VPLEX virtual storage technology have the company well-positioned to be a major player in virtualization, private and public cloud computing.
EMC said sales of its high-end Symmetrix data storage systems grew 32 percent in the second quarter while sales of its mid-range data storage products increased 33 percent. “Clearly we are gaining market share in storage,” Goulden said.
“While storage is a mature industry, the move toward virtualization within the data center puts EMC in the driver’s seat to take advantage of this next-generation technology shift given the company’s massive installed base, brand awareness, expanding product breadth, and unique approach to the market (storage, virtualization, security),” said a report from FBR Capital Markets.