• Press Release

    April 19, 2012

    EMC Reports 23 Increase in First Quarter Profit Achieves 11 Growth in Quarterly Revenue

    EMC Delivers 9th Consecutive Quarter of Year-Over-Year Double-Digit Revenue, Profit and EPS Growth

    Story Highlights

      First-Quarter Highlights:

      • Consolidated revenue up 11% year over year
      • GAAP net income up 23% year over year; GAAP EPS up 29%
      • Non-GAAP net income up 17% year over year; Non-GAAP EPS up 19%
      • Strong year-over-year percentage increases in gross and operating margins
      • Strong year-over-year increases in operating cash flow and free cash flow

    HOPKINTON, Mass. - April 19, 2012 -

    EMC Corporation (NYSE:EMC) today reported strong financial results for the first quarter of 2012, marking the company's ninth consecutive quarter of achieving year-over-year double-digit growth for consolidated revenue, net income and EPS.

    First-quarter consolidated revenue was $5.1 billion, an increase of 11% compared with the year-ago quarter. First-quarter GAAP net income attributable to EMC increased 23% year over year to $587 million. First-quarter GAAP earnings per weighted average diluted share increased 29% year over year to $0.27. Non-GAAP1 net income attributable to EMC for the first quarter was $818 million, an increase of 17% compared with the year-ago quarter. First-quarter non-GAAP1 earnings per weighted average diluted share were $0.37, an increase of 19% year over year.

    During the first quarter, EMC generated operating cash flow of $1.7 billion and free cash flow2 of $1.4 billion, increases of 49% and 67% year over year, respectively. Additionally, the company significantly expanded GAAP and non-GAAP gross margin and operating margin percentages on a year-over-year basis, and ended the quarter with $10.9 billion in cash and investments.

    Joe Tucci, EMC Chairman and Chief Executive Officer, said, “We are in a time of unprecedented IT and business transformation, propelled by the benefits of cloud computing, Big Data and trust. EMC is off to a strong start to 2012 and is exceptionally well-positioned to help customers take advantage of these major transformational shifts. We have never been more excited about what this great technology company can accomplish and look forward to helping our customers drive maximum value from their IT investments in the years ahead.”

    David Goulden, EMC Executive Vice President and Chief Financial Officer, said, “EMC's solid first-quarter results are ongoing proof that we are executing on our strategy and on track to deliver our 'triple play' – simultaneously taking market share, reinvesting for growth and delivering improved earnings this year. Based upon our strong start to the year and our opportunity, we now have greater confidence in our ability to meet and potentially exceed our 2012 financial goals for consolidated revenue, non-GAAP EPS and free cash flow. Additionally, with continued steady execution, we are well on our way to achieving the financial potential of 2014 consolidated revenue of over $28 billion, which represents compound annual revenue growth of at least 13% from 2010 and non-GAAP EPS growth even greater than this.”

    First-Quarter Highlights

    First-quarter highlights included strong customer demand for EMC's market-leading mid-tier storage products portfolio3, which increased revenue 26% year over year. The company's Isilon scale-out NAS business nearly doubled its revenue year over year, and its VNX unified storage family, Backup Recovery Systems (BRS) portfolio , and Greenplum portfolio each delivered strong year-over-year revenue growth. Also during the quarter, EMC's RSA Information Security business increased revenue 19% year over year and revenue from VMware (NYSE: VMW), the global leader in virtualization and cloud infrastructure, grew 25% year over year. Additionally, EMC continued to experience strong customer demand for its broad portfolio of services to help customers accelerate to the cloud. Finally, VCE, the Virtual Computing Environment Company formed by Cisco and EMC with investments from VMware and Intel, continued its momentum as customer adoption of Vblock Converged Infrastructure Platforms increased significantly on a year-over-year basis.

    EMC's consolidated first-quarter revenue from the United States increased 11% year over year to $2.6 billion, representing 52% of consolidated first-quarter revenue. Revenue from EMC's business operations outside of the United States increased 10% year over year to $2.5 billion and represented 48% of consolidated first-quarter revenue. Within this, revenue in EMC's Asia Pacific and Japan region reached an all-time record level, growing 20% year over year. EMC's Europe, Middle East and Africa region grew revenue 6% year over year and EMC's Latin America region grew revenue 20% year over year.

    Business Outlook

    The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements do not give effect to the potential impact of mergers, acquisitions, divestitures or business combinations that may be announced or closed after the date hereof. These statements supersede all prior statements made by EMC regarding 2012 financial results.

    All dollar amounts and percentages set forth below should be considered to be approximations.

    • Consolidated revenues are expected to meet and potentially exceed $22.0 billion for 2012.
    • Consolidated GAAP operating income is expected to be 17.5% of revenues for 2012 and consolidated non-GAAP operating income is expected to be 24% of revenues for 2012. Excluded from consolidated non-GAAP operating income are stock-based compensation expense, intangible asset amortization, restructuring and acquisition-related charges and the amortization of VMware's capitalized software from prior periods, which account for 4%, 1.5%, 0.5% and 0.5% of revenues, respectively.
    • Total consolidated GAAP non-operating expense, which includes investment income, interest expense and other income and expense, is expected to be $225 million in 2012 and total consolidated non-GAAP non-operating expense is expected to be $220 million in 2012. Excluded from non-GAAP non-operating expense is stock-based compensation expense of $5 million.
    • Consolidated GAAP net income attributable to EMC is expected to be $2.8 billion in 2012 and consolidated non-GAAP net income attributable to EMC is expected to be $3.8 billion in 2012. Excluded from consolidated non-GAAP net income attributable to EMC are stock-based compensation expense, intangible asset amortization, restructuring and acquisition-related charges and the amortization of VMware's capitalized software from prior periods, which account for $650 million, $230 million, $90 million and $30 million, respectively.
    • Consolidated GAAP earnings per weighted average diluted share are expected to meet and potentially exceed $1.25 for 2012 and consolidated non-GAAP earnings per weighted average diluted share are expected to meet and potentially exceed $1.70 for 2012. Excluded from consolidated non-GAAP earnings per weighted average diluted share are stock-based compensation expense, intangible asset amortization, restructuring and acquisition-related charges and the amortization of VMware's capitalized software from prior periods, which account for $0.29, $0.11, $0.04 and $0.01 per weighted average diluted share, respectively.
    • The consolidated GAAP income tax rate is expected to be 20% for 2012. Excluding the impact of stock-based compensation expense, intangible asset amortization, restructuring and acquisition-related charges and the amortization of VMware's capitalized software from prior periods, which collectively impact the tax rate by 1%, the consolidated non-GAAP income tax rate is expected to be 21% for 2012. This assumes that the U.S. research and development tax credit for 2012 is extended in the fourth quarter of 2012.
    • GAAP net income attributable to the non-controlling interest in VMware is expected to be $159 million and non-GAAP net income attributable to the non-controlling interest in VMware is expected to be $250 million for 2012. Excluded from non-GAAP net income attributable to the non-controlling interest in VMware are stock-based compensation expense, intangible asset amortization and the amortization of VMware's capitalized software from prior periods, which account for $72 million, $11 million and $8 million, respectively. The incremental dilution attributable to the shares of VMware held by EMC is expected to be $15 million for 2012.
    • Consolidated net cash provided by operating activities is expected to be $6.2 billion for 2012 and free cash flow is expected to meet or potentially exceed $4.9 billion for 2012. Excluded from free cash flow are $900 million of additions to property, plant and equipment and $400 million of capitalized software development costs.
    • The weighted average outstanding diluted shares are expected to be 2.22 billion for 2012.
    • EMC expects to repurchase $700 million of the company's common stock in 2012.

    Supporting Resources

    About Dell

    Dell EMC, a part of Dell Technologies, enables organizations to modernize, automate and transform their data center using industry-leading converged infrastructure, servers, storage and data protection technologies. This provides a trusted foundation for businesses to transform IT, through the creation of a hybrid cloud, and transform their business through the creation of cloud-native applications and big data solutions. Dell EMC services customers across 180 countries – including 98 percent of the Fortune 500 – with the industry’s most comprehensive and innovative portfolio from edge to core to cloud.

    Copyright © 2017 Dell Inc. or its subsidiaries. All Rights Reserved. Dell, EMC and other trademarks are trademarks of Dell Inc. or its subsidiaries. Other trademarks may be trademarks of their respective owners.

  • Press Release

    April 24, 2012

    EMC Reports 23 Increase in First Quarter Profit Achieves 11 Growth in Quarterly Revenue

    Story Highlights

    • Consolidated revenue up 11% year over year
    • GAAP net income up 23% year over year; GAAP EPS up 29%
    • Non-GAAP net income up 17% year over year; Non-GAAP EPS up 19%
    • Strong year-over-year percentage increases in gross and operating margins
    • Strong year-over-year increases in operating cash flow and free cash flow

    JOHANNESBURG - April 24, 2012 -

    EMC Corporation (NYSE:EMC) today reported strong financial results for the first quarter of 2012, marking the company's ninth consecutive quarter of achieving year-over-year double-digit growth for consolidated revenue, net income and EPS.

    First-quarter consolidated revenue was $5.1 billion, an increase of 11% compared with the year-ago quarter. First-quarter GAAP net income attributable to EMC increased 23% year over year to $587 million. First-quarter GAAP earnings per weighted average diluted share increased 29% year over year to $0.27. Non-GAAP1 net income attributable to EMC for the first quarter was $818 million, an increase of 17% compared with the year-ago quarter. First-quarter non-GAAP1 earnings per weighted average diluted share were $0.37, an increase of 19% year over year.

    During the first quarter, EMC generated operating cash flow of $1.7 billion and free cash flow2 of $1.4 billion, increases of 49% and 67% year over year, respectively. Additionally, the company significantly expanded GAAP and non-GAAP gross margin and operating margin percentages on a year-over-year basis, and ended the quarter with $10.9 billion in cash and investments.

    Joe Tucci, EMC Chairman and Chief Executive Officer, said, “We are in a time of unprecedented IT and business transformation, propelled by the benefits of cloud computing, Big Data and trust. EMC is off to a strong start to 2012 and is exceptionally well-positioned to help customers take advantage of these major transformational shifts. We have never been more excited about what this great technology company can accomplish and look forward to helping our customers drive maximum value from their IT investments in the years ahead.”

    David Goulden, EMC Executive Vice President and Chief Financial Officer, said, “EMC's solid first-quarter results are ongoing proof that we are executing on our strategy and on track to deliver our 'triple play' – simultaneously taking market share, reinvesting for growth and delivering improved earnings this year. Based upon our strong start to the year and our opportunity, we now have greater confidence in our ability to meet and potentially exceed our 2012 financial goals for consolidated revenue, non-GAAP EPS and free cash flow. Additionally, with continued steady execution, we are well on our way to achieving the financial potential of 2014 consolidated revenue of over $28 billion, which represents compound annual revenue growth of at least 13% from 2010 and non-GAAP EPS growth even greater than this.”

    First-Quarter Highlights

    First-quarter highlights included strong customer demand for EMC's market-leading mid-tier storage products portfolio3, which increased revenue 26% year over year. The company's Isilon scale-out NAS business nearly doubled its revenue year over year, and its VNX unified storage family, Backup Recovery Systems (BRS) portfolio , and Greenplum portfolio each delivered strong year-over-year revenue growth. Also during the quarter, EMC's RSA Information Security business increased revenue 19% year over year and revenue from VMware (NYSE: VMW), the global leader in virtualization and cloud infrastructure, grew 25% year over year. Additionally, EMC continued to experience strong customer demand for its broad portfolio of services to help customers accelerate to the cloud. Finally, VCE, the Virtual Computing Environment Company formed by Cisco and EMC with investments from VMware and Intel, continued its momentum as customer adoption of Vblock Converged Infrastructure Platforms increased significantly on a year-over-year basis.

    EMC's consolidated first-quarter revenue from the United States increased 11% year over year to $2.6 billion, representing 52% of consolidated first-quarter revenue. Revenue from EMC's business operations outside of the United States increased 10% year over year to $2.5 billion and represented 48% of consolidated first-quarter revenue. Within this, revenue in EMC's Asia Pacific and Japan region reached an all-time record level, growing 20% year over year. EMC's Europe, Middle East and Africa region grew revenue 6% year over year and EMC's Latin America region grew revenue 20% year over year.

    Business Outlook

    The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements do not give effect to the potential impact of mergers, acquisitions, divestitures or business combinations that may be announced or closed after the date hereof. These statements supersede all prior statements made by EMC regarding 2012 financial results.

    All dollar amounts and percentages set forth below should be considered to be approximations.

    • Consolidated revenues are expected to meet and potentially exceed $22.0 billion for 2012.
    • Consolidated GAAP operating income is expected to be 17.5% of revenues for 2012 and consolidated non-GAAP operating income is expected to be 24% of revenues for 2012. Excluded from consolidated non-GAAP operating income are stock-based compensation expense, intangible asset amortization, restructuring and acquisition-related charges and the amortization of VMware's capitalized software from prior periods, which account for 4%, 1.5%, 0.5% and 0.5% of revenues, respectively.
    • Total consolidated GAAP non-operating expense, which includes investment income, interest expense and other income and expense, is expected to be $225 million in 2012 and total consolidated non-GAAP non-operating expense is expected to be $220 million in 2012. Excluded from non-GAAP non-operating expense is stock-based compensation expense of $5 million.
    • Consolidated GAAP net income attributable to EMC is expected to be $2.8 billion in 2012 and consolidated non-GAAP net income attributable to EMC is expected to be $3.8 billion in 2012. Excluded from consolidated non-GAAP net income attributable to EMC are stock-based compensation expense, intangible asset amortization, restructuring and acquisition-related charges and the amortization of VMware's capitalized software from prior periods, which account for $650 million, $230 million, $90 million and $30 million, respectively.
    • Consolidated GAAP earnings per weighted average diluted share are expected to meet and potentially exceed $1.25 for 2012 and consolidated non-GAAP earnings per weighted average diluted share are expected to meet and potentially exceed $1.70 for 2012. Excluded from consolidated non-GAAP earnings per weighted average diluted share are stock-based compensation expense, intangible asset amortization, restructuring and acquisition-related charges and the amortization of VMware's capitalized software from prior periods, which account for $0.29, $0.11, $0.04 and $0.01 per weighted average diluted share, respectively.
    • The consolidated GAAP income tax rate is expected to be 20% for 2012. Excluding the impact of stock-based compensation expense, intangible asset amortization, restructuring and acquisition-related charges and the amortization of VMware's capitalized software from prior periods, which collectively impact the tax rate by 1%, the consolidated non-GAAP income tax rate is expected to be 21% for 2012. This assumes that the U.S. research and development tax credit for 2012 is extended in the fourth quarter of 2012.
    • GAAP net income attributable to the non-controlling interest in VMware is expected to be $159 million and non-GAAP net income attributable to the non-controlling interest in VMware is expected to be $250 million for 2012. Excluded from non-GAAP net income attributable to the non-controlling interest in VMware are stock-based compensation expense, intangible asset amortization and the amortization of VMware's capitalized software from prior periods, which account for $72 million, $11 million and $8 million, respectively. The incremental dilution attributable to the shares of VMware held by EMC is expected to be $15 million for 2012.
    • Consolidated net cash provided by operating activities is expected to be $6.2 billion for 2012 and free cash flow is expected to meet or potentially exceed $4.9 billion for 2012. Excluded from free cash flow are $900 million of additions to property, plant and equipment and $400 million of capitalized software development costs.
    • The weighted average outstanding diluted shares are expected to be 2.22 billion for 2012.
    • EMC expects to repurchase $700 million of the company's common stock in 2012.

    Supporting Resources

    About Dell

    Dell EMC, a part of Dell Technologies, enables organizations to modernize, automate and transform their data center using industry-leading converged infrastructure, servers, storage and data protection technologies. This provides a trusted foundation for businesses to transform IT, through the creation of a hybrid cloud, and transform their business through the creation of cloud-native applications and big data solutions. Dell EMC services customers across 180 countries – including 98 percent of the Fortune 500 – with the industry’s most comprehensive and innovative portfolio from edge to core to cloud.

    Copyright © 2017 Dell Inc. or its subsidiaries. All Rights Reserved. Dell, EMC and other trademarks are trademarks of Dell Inc. or its subsidiaries. Other trademarks may be trademarks of their respective owners.