EMC: Cloud, Big Data, Security Drive Strong Q1 Financials


EMC Thursday notched its ninth consecutive quarter of double-digit year-over-year quarterly growth in revenue, income and earnings per share.

The company attributed its triple play financial results to a combination of across-the-board product growth related to cloud computing, big data and security, as well as to a fast-growing indirect sales channel presence.

Joe Tucci, EMC chairman and CEO, said he was very pleased with the results. "I have always believed that starting out the new year strong is important," Tucci said.

[Related: EMC's Major Product Launch: From Entry-Level To Enterprise Storage]

For its first financial quarter of 2012, which ended March 31, EMC reported revenue of $5.1 billion, up 11 percent over the $4.6 billion the company reported last year.

EMC also reported first-quarter income of $587 million, up 23 percent over last year's first-quarter income of $477 million. Earnings per share for the first quarter hit 27 cents, up 29 percent over last year's 21 cents per share.

David Goulden, EMC executive vice president and CFO, said EMC's first-quarter 2012 financials reflect how well EMC has done in addressing customers' primary requirements.

"Our strong results show that we are addressing the major trends in clouds, big data, and trust," Goulden said.

While EMC's high-end storage revenue dropped 10 percent over last year, that was due to an exceptional first-quarter sales in 2011 of 25 percent, making it a tough quarter to compare against, Goulden said. EMC expects high-end storage growth this year to return to its single-digit normal rate, he said.

Midrange storage revenue, on the other hand, grew 26 percent over last year, Goulden said. That was due to organic growth, not acquisitions, he said.

EMC has done particularly well in the channel in the midrange storage market, Goulden said. EMC's VNX product launch in January 2011 brought in almost 6,000 new customers. "Many of these were brought to EMC via the more than 2.000 new channel partners who have joined EMC since the launch," he said.

Goulden also said that EMC's top five channel partners saw their total EMC unified storage revenue grow 45 percent over last year.

EMC last week introduced its VSPEX reference architecture, which will offer ways to build converged infrastructure platforms including storage, compute, networking and virtualization technologies, with the VSPEX business going exclusively through the channel, he said.

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