HOPKINTON, Mass. - October 24, 2012 -
EMC Corporation (NYSE:EMC) today reported financial results for the third quarter of 2012, highlighted by record third-quarter consolidated revenue, net income and EPS.
Third-quarter consolidated revenue was $5.28 billion, an increase of 6% compared with the year-ago quarter. Third-quarter GAAP net income attributable to EMC increased 3% year over year to $626 million. Third-quarter GAAP earnings per weighted average diluted share increased 4% year over year to $0.28. Non-GAAP1 net income attributable to EMC for the third quarter was $881 million, an increase of 7% compared with the year-ago quarter. Third-quarter non-GAAP1 earnings per weighted average diluted share were $0.40, an increase of 8% year over year.
During the third quarter, EMC generated operating cash flow of $1.44 billion and free cash flow2 of $1.14 billion, a year-over-year increase of 12% and 16%, respectively. Additionally, the company ended the quarter with $10.6 billion in cash and investments.
Joe Tucci, EMC Chairman and Chief Executive Officer, said, “EMC’s third-quarter revenue and profit growth reflect the resiliency of our business in a more uncertain global economic environment. We remain very well positioned to capitalize on — and drive — the transformative trends of cloud computing, Big Data and trusted IT. These major waves of change in IT become increasingly more important to customers and partners as they navigate through a cyclical slowdown, look to gain maximum value from their investments, and focus on their longer-term IT and business transformations.”
David Goulden, EMC President and Chief Operating Officer, said, “For the third quarter, EMC’s business continued to grow faster than overall IT spending growth and we gained market share in what turned out to be a more cautionary environment than we expected heading into the quarter. We remain extremely confident in our strategy, best-of-breed product portfolio and solid operational and financial model. Going forward, we fully believe that EMC will continue to grow faster than our addressable markets and take share, reinvest for the future, and deliver earnings leverage for shareholders.”
In the third quarter, revenue from EMC’s networked storage platforms portfolio3, which includes EMC’s high-end and mid-tier storage platform products, grew 2% year over year. Revenue from EMC’s high-end Symmetrix storage product portfolio, which includes the company’s VMAX systems family, increased 5% compared with the year-ago quarter. Revenue from the company’s portfolio of mid-tier storage products4 was flat year over year.
Other third-quarter highlights included continued customer demand for EMC’s Isilon scale-out NAS products and the company’s Backup Recovery Systems (BRS) portfolio. Adoption of EMC’s VSPEX reference architecture solutions also gained momentum and popularity among customers and with partners who have sold more than 300 VSPEX solutions since their launch in April 2012. Customers also continued to increasingly turn to EMC’s Greenplum product portfolio to gain insight and value from Big Data. Revenue from EMC’s RSA Information Security business increased 6% year over year, driven by continued customer requirements for trusted IT solutions. VMware (NYSE: VMW), the global leader in virtualization and cloud infrastructure, grew revenue 20% year over year. Additionally, EMC continued to experience solid demand for its broad portfolio of services to help customers accelerate their transition to cloud architectures and transform IT. Finally, VCE, formed by Cisco and EMC with investments from VMware and Intel, continued to gain traction in enterprise data centers and cloud service providers globally as demand for Vblock systems showed strong growth in the third quarter.
EMC’s consolidated third-quarter revenue from the United States increased 8% year over year to $2.9 billion, representing 55% of consolidated third-quarter revenue. Revenue from EMC’s business operations outside of the United States increased 4% year over year to $2.4 billion and represented 45% of consolidated third-quarter revenue.
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.
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