HOPKINTON, Mass. - April 24, 2013 -

HIGHLIGHTS:

• Record first-quarter revenue, non-GAAP net income, non-GAAP EPS, operating cash flow and free cash flow

• Year-over-year revenue growth across U.S. and major global geographies, with solid revenue growth from BRIC+13 markets

• EMC reaffirms full-year 2013 business outlook for consolidated revenue and non-GAAP EPS

EMC Corporation (NYSE:EMC) today reported first-quarter 2013 financial results that were highlighted by first-quarter records for consolidated revenue, non-GAAP net income, non-GAAP EPS and operating and free cash flow.

First-quarter revenue was $5.39 billion, an increase of 6% compared with the year-ago quarter. First-quarter GAAP net income attributable to EMC was $580 million and first-quarter GAAP earnings per weighted average diluted share were $0.26. Non-GAAP¹ net income attributable to EMC was $850 million, an increase of 4% compared with the year-ago quarter. Non-GAAP¹ earnings per weighted average diluted share were $0.39, an increase of 5% year over year.

During the first quarter, EMC increased operating cash flow and free cash flow² on a year-over-year basis to $1.71 billion and $1.44 billion, respectively. First-quarter GAAP and non-GAAP gross margins grew on a year-over-year basis, and the company ended the quarter with $12 billion in cash and investments.

Joe Tucci, EMC Chairman and Chief Executive Officer, said, “EMC’s solid first-quarter financial results speak to the strength of our execution and the soundness of our strategy that offers customers greater efficiency, control, choice and agility. Our three federated businesses – EMC Information Infrastructure, VMware and Pivotal – are squarely focused on areas of IT that are expected to experience high growth over the next decade: cloud computing, Big Data and trusted IT. Each business is chartered to build its own technology and partner ecosystem necessary to succeed, while staying aligned to leverage one another’s strengths and to create value for our customers and shareholders. I am incredibly energized by the strength of our business model and the way we have positioned the company to lead this transformative era in information technology.”

David Goulden, EMC President and Chief Operating Officer, said, “EMC’s focus on cloud computing, Big Data and trusted IT helped drive solid revenue, non-GAAP net income and non-GAAP EPS growth in the first quarter. We believe EMC is extremely well-positioned to grow faster than the IT marketplace, produce leverage in the business and continue to innovate and evolve to capitalize on the opportunities ahead. Our first-quarter results are consistent with the full-year revenue and non-GAAP EPS outlook we provided in January, which remains unchanged. With continued steady execution, we expect that EMC will achieve our previously stated longer-term potential of more than $30 billion in revenue in 2016 with non-GAAP EPS growth outpacing revenue growth during this timeframe.”

First-Quarter Highlights

First-quarter revenue from EMC’s Information Storage business grew 3% year over year.  Highlights within this include: revenue from EMC’s High-end Storage business³ increased 10% year over year, and revenue from EMC’s Emerging Storage business⁴ increased 24% year over year.  EMC’s RSA Information Security business increased revenue 12% year over year, and EMC’s Information Intelligence business returned to growth, increasing revenue 7% year over year.

EMC’s VSPEX reference architecture solutions continued to gain momentum with rapid adoption and increasing popularity with customers and among partners who have sold just under 2,200 VSPEX solutions since their launch in April 2012.  Demand for VCE’s Vblock systems also showed strong year-over-year growth in the first quarter.  Finally, EMC continued to expand its Service Provider Program with first-quarter revenue from service provider partners up over 40% year over year.

VMware (NYSE: VMW), the global leader in virtualization and cloud infrastructure, grew revenue 13% year over year.  Visit http://ir.vmware.com for more information about VMware’s first-quarter financial results.

In the first quarter, EMC and VMware announced that they would form a new company – Pivotal⁵ – which unites strategic technology, people and programs from EMC and VMware, including: Greenplum, Cloud Foundry, Spring, Cetas, Pivotal Labs, GemFire and other products from the VMware vFabric Suite.  Pivotal’s mission is to deliver the world’s most powerful enterprise platform-as-a-service enabling customers to build a new class of applications, leveraging big and fast data, and do all of this with the power of cloud independence.  Today, Pivotal will also announce that General Electric Company (GE) plans to make a strategic investment of approximately $105 million in the company, representing a 10% equity stake.  The companies will also announce their intent to enter into a broad research and development and commercial agreement aimed at accelerating GE’s ability to create new analytic services and solutions for its customers.  Pivotal’s press release with additional information will be available this morning at http://gopivotal.com/.

EMC’s consolidated first-quarter revenue from the United States increased 8% year over year to $2.8 billion, representing 53% of consolidated first-quarter revenue. Revenue from EMC’s business operations outside of the United States increased 4% year over year to $2.6 billion and represented 47% of consolidated first-quarter revenue.  Within this, on a year over year basis, revenue from EMC’s Europe, Middle East and Africa region grew 1%, revenue from EMC’s Asia Pacific and Japan region increased 4%, and revenue from EMC’s Latin American region grew 27%. Revenue from EMC’s BRIC+13 markets increased 10% 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 2013 financial results.

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

• Consolidated revenues are expected to be $23.5 billion for 2013.
• Consolidated GAAP operating income is expected to be 18.5% of revenues for 2013 and consolidated non-GAAP operating income is expected to be 25.5% of revenues for 2013. 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 4.3%, 1.6%, 1.0% and 0.1% of revenues, respectively.
• Total consolidated GAAP and non-GAAP non-operating expense, which includes investment income, interest expense and other income and expense, is expected to be $280 million in 2013.
• Consolidated GAAP net income attributable to EMC is expected to be $3.0 billion in 2013 and consolidated non-GAAP net income attributable to EMC is expected to be $4.1 billion in 2013. Excluded from consolidated non-GAAP net income attributable to EMC are stock-based compensation expense, intangible asset amortization, restructuring and acquisition-related charges, the amortization of VMware's capitalized software from prior periods and the benefit of the 2012 R&D tax credit which account for $700 million, $250 million, $160 million, $15 million and ($60 million), respectively.
• Consolidated GAAP earnings per weighted average diluted share are expected to be $1.36 for 2013 and consolidated non-GAAP earnings per weighted average diluted share are expected to be $1.85 for 2013. Excluded from consolidated non-GAAP earnings per weighted average diluted share are stock-based compensation expense, intangible asset amortization, restructuring and acquisition-related charges, the amortization of VMware's capitalized software from prior periods and the benefit of the 2012 R&D tax credit which account for $0.32, $0.12, $0.07, $0.01 and ($0.03) per weighted average diluted share, respectively.
• The consolidated GAAP income tax rate is expected to be 20.5% for 2013. Excluding the tax impact of stock-based compensation expense, intangible asset amortization, restructuring and acquisition-related charges, the amortization of VMware's capitalized software from prior periods, and the benefit of the 2012 R&D tax credit which collectively impact the tax rate by 3%, the consolidated non-GAAP income tax rate is expected to be 23.5% for 2013.
• GAAP net income attributable to the non-controlling interest in VMware is expected to be $180 million and non-GAAP net income attributable to the non-controlling interest in VMware is expected to be $285 million for 2013. Excluded from non-GAAP net income attributable to the non-controlling interest in VMware are stock-based compensation expense, intangible asset amortization, restructuring and acquisition-related charges, the amortization of VMware's capitalized software from prior periods, and the benefit of the 2012 R&D tax credit which account for $78 million, $15 million, $14 million, $4 million and ($6 million), respectively. The incremental dilution attributable to the shares of VMware held by EMC is expected to be $10 million for 2013.
• Consolidated net cash provided by operating activities is expected to be $6.8 billion for 2013 and free cash flow is expected to be $5.5 billion for 2013. 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 2.2 billion for 2013.
• EMC expects to repurchase $1 billion of the company's common stock in 2013.

Supporting Resources

• EMC will host its 2013 first-quarter earnings conference call today at 8:30 a.m. ET, which will be available via EMC’s web site at https://corporate.delltechnologies.com/en-us/investors.htm

• Additional information regarding EMC’s financials, as well as a webcast of the conference call, will be available at 8:30 a.m. ET at https://corporate.delltechnologies.com/en-us/investors.htm

JOHANNESBURG - April 25, 2013 -

EMC Corporation (NYSE:EMC) today reported first-quarter 2013 financial results that were highlighted by first-quarter records for consolidated revenue, non-GAAP net income, non-GAAP EPS and operating and free cash flow.

First-quarter revenue was $5.39 billion, an increase of 6% compared with the year-ago quarter. First-quarter GAAP net income attributable to EMC was $580 million and first-quarter GAAP earnings per weighted average diluted share were $0.26. Non-GAAP¹ net income attributable to EMC was $850 million, an increase of 4% compared with the year-ago quarter. Non-GAAP¹ earnings per weighted average diluted share were $0.39, an increase of 5% year over year.

During the first quarter, EMC increased operating cash flow and free cash flow² on a year-over-year basis to $1.71 billion and $1.44 billion, respectively. First-quarter GAAP and non-GAAP gross margins grew on a year-over-year basis, and the company ended the quarter with $12 billion in cash and investments.

Joe Tucci, EMC Chairman and Chief Executive Officer, said, “EMC’s solid first-quarter financial results speak to the strength of our execution and the soundness of our strategy that offers customers greater efficiency, control, choice and agility. Our three federated businesses – EMC Information Infrastructure, VMware and Pivotal – are squarely focused on areas of IT that are expected to experience high growth over the next decade: cloud computing, Big Data and trusted IT. Each business is chartered to build its own technology and partner ecosystem necessary to succeed, while staying aligned to leverage one another’s strengths and to create value for our customers and shareholders. I am incredibly energized by the strength of our business model and the way we have positioned the company to lead this transformative era in information technology.”

David Goulden, EMC President and Chief Operating Officer, said, “EMC’s focus on cloud computing, Big Data and trusted IT helped drive solid revenue, non-GAAP net income and non-GAAP EPS growth in the first quarter. We believe EMC is extremely well-positioned to grow faster than the IT marketplace, produce leverage in the business and continue to innovate and evolve to capitalize on the opportunities ahead. Our first-quarter results are consistent with the full-year revenue and non-GAAP EPS outlook we provided in January, which remains unchanged. With continued steady execution, we expect that EMC will achieve our previously stated longer-term potential of more than $30 billion in revenue in 2016 with non-GAAP EPS growth outpacing revenue growth during this timeframe.”

First-Quarter Highlights

First-quarter revenue from EMC’s Information Storage business grew 3% year over year.  Highlights within this include: revenue from EMC’s High-end Storage business³ increased 10% year over year, and revenue from EMC’s Emerging Storage business⁴ increased 24% year over year.  EMC’s RSA Information Security business increased revenue 12% year over year, and EMC’s Information Intelligence business returned to growth, increasing revenue 7% year over year.

EMC’s VSPEX reference architecture solutions continued to gain momentum with rapid adoption and increasing popularity with customers and among partners who have sold just under 2,200 VSPEX solutions since their launch in April 2012.  Demand for VCE’s Vblock systems also showed strong year-over-year growth in the first quarter.  Finally, EMC continued to expand its Service Provider Program with first-quarter revenue from service provider partners up over 40% year over year.

VMware (NYSE: VMW), the global leader in virtualization and cloud infrastructure, grew revenue 13% year over year.  Visit http://ir.vmware.com for more information about VMware’s first-quarter financial results.

In the first quarter, EMC and VMware announced that they would form a new company – Pivotal⁵ – which unites strategic technology, people and programs from EMC and VMware, including: Greenplum, Cloud Foundry, Spring, Cetas, Pivotal Labs, GemFire and other products from the VMware vFabric Suite.  Pivotal’s mission is to deliver the world’s most powerful enterprise platform-as-a-service enabling customers to build a new class of applications, leveraging big and fast data, and do all of this with the power of cloud independence.  Today, Pivotal will also announce that General Electric Company (GE) plans to make a strategic investment of approximately $105 million in the company, representing a 10% equity stake.  The companies will also announce their intent to enter into a broad research and development and commercial agreement aimed at accelerating GE’s ability to create new analytic services and solutions for its customers.  Pivotal’s press release with additional information will be available this morning at http://gopivotal.com/.

EMC’s consolidated first-quarter revenue from the United States increased 8% year over year to $2.8 billion, representing 53% of consolidated first-quarter revenue. Revenue from EMC’s business operations outside of the United States increased 4% year over year to $2.6 billion and represented 47% of consolidated first-quarter revenue.  Within this, on a year over year basis, revenue from EMC’s Europe, Middle East and Africa region grew 1%, revenue from EMC’s Asia Pacific and Japan region increased 4%, and revenue from EMC’s Latin American region grew 27%. Revenue from EMC’s BRIC+13 markets increased 10% 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 2013 financial results.

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

• Consolidated revenues are expected to be $23.5 billion for 2013.
• Consolidated GAAP operating income is expected to be 18.5% of revenues for 2013 and consolidated non-GAAP operating income is expected to be 25.5% of revenues for 2013. 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 4.3%, 1.6%, 1.0% and 0.1% of revenues, respectively.
• Total consolidated GAAP and non-GAAP non-operating expense, which includes investment income, interest expense and other income and expense, is expected to be $280 million in 2013.
• Consolidated GAAP net income attributable to EMC is expected to be $3.0 billion in 2013 and consolidated non-GAAP net income attributable to EMC is expected to be $4.1 billion in 2013. Excluded from consolidated non-GAAP net income attributable to EMC are stock-based compensation expense, intangible asset amortization, restructuring and acquisition-related charges, the amortization of VMware's capitalized software from prior periods and the benefit of the 2012 R&D tax credit which account for $700 million, $250 million, $160 million, $15 million and ($60 million), respectively.
• Consolidated GAAP earnings per weighted average diluted share are expected to be $1.36 for 2013 and consolidated non-GAAP earnings per weighted average diluted share are expected to be $1.85 for 2013. Excluded from consolidated non-GAAP earnings per weighted average diluted share are stock-based compensation expense, intangible asset amortization, restructuring and acquisition-related charges, the amortization of VMware's capitalized software from prior periods and the benefit of the 2012 R&D tax credit which account for $0.32, $0.12, $0.07, $0.01 and ($0.03) per weighted average diluted share, respectively.
• The consolidated GAAP income tax rate is expected to be 20.5% for 2013. Excluding the tax impact of stock-based compensation expense, intangible asset amortization, restructuring and acquisition-related charges, the amortization of VMware's capitalized software from prior periods, and the benefit of the 2012 R&D tax credit which collectively impact the tax rate by 3%, the consolidated non-GAAP income tax rate is expected to be 23.5% for 2013.
• GAAP net income attributable to the non-controlling interest in VMware is expected to be $180 million and non-GAAP net income attributable to the non-controlling interest in VMware is expected to be $285 million for 2013. Excluded from non-GAAP net income attributable to the non-controlling interest in VMware are stock-based compensation expense, intangible asset amortization, restructuring and acquisition-related charges, the amortization of VMware's capitalized software from prior periods, and the benefit of the 2012 R&D tax credit which account for $78 million, $15 million, $14 million, $4 million and ($6 million), respectively. The incremental dilution attributable to the shares of VMware held by EMC is expected to be $10 million for 2013.
• Consolidated net cash provided by operating activities is expected to be $6.8 billion for 2013 and free cash flow is expected to be $5.5 billion for 2013. 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 2.2 billion for 2013.
• EMC expects to repurchase $1 billion of the company's common stock in 2013.

Supporting Resources

• EMC will host its 2013 first-quarter earnings conference call today at 8:30 a.m. ET, which will be available via EMC’s web site at https://corporate.delltechnologies.com/en-us/investors.htm

• Additional information regarding EMC’s financials, as well as a webcast of the conference call, will be available at 8:30 a.m. ET at https://corporate.delltechnologies.com/en-us/investors.htm