HOPKINTON, Mass. - July 24, 2013 -
EMC Corporation (NYSE:EMC) today reported quarterly financial results that were highlighted by record second-quarter consolidated revenue, net income and EPS. The company achieved year-over-year revenue growth across all three of its federated businesses, with continued steady growth from EMC Information Infrastructure, double-digit growth from Pivotal and accelerating double-digit growth from VMware.
Second-quarter consolidated revenue was $5.6 billion, an increase of 6% compared with the year-ago quarter. Second-quarter GAAP net income attributable to EMC was $701 million. Second-quarter GAAP earnings per weighted average diluted share increased 10% year over year to $0.32. Non-GAAP1 net income attributable to EMC was $907 million. Non-GAAP1 earnings per weighted average diluted share were $0.42, an increase of 8% year over year.
EMC generated year-to-date operating cash flow of $2.9 billion and free cash flow2 of $2.3 billion, and ended the second quarter with $17.6 billion in cash and investments.
Joe Tucci, EMC Chairman and Chief Executive Officer, said, “The strength and demand we saw during the quarter, despite a cautious IT spending environment, speaks to the soundness of our strategy, the value customers see in our federated business model, and the massive opportunity ahead in cloud computing, Big Data and trusted IT. EMC Information Infrastructure, VMware and Pivotal are positioned on the leading edge of these significant trends. Each business is focused on building its own unique technologies and independent partner ecosystems to offer customers greater choice. Collectively they add up to a very competitive technology stack that not only addresses our customers' top IT needs in 2013, but also their longer-term business transformation priorities.”
David Goulden, EMC President and Chief Operating Officer, said, “Our second-quarter results are further evidence that our business strategy is on target and that we continue to deliver our ‘triple play'– to gain market share, reinvest for the future and deliver leverage. With another solid quarter behind us, we are reaffirming our full-year revenue, non-GAAP EPS and free cash flow goals. EMC's robust product roadmap, combined with the success we are seeing across our cloud, Big Data and trusted IT initiatives, and the continued interest from customers in our market-leading technology, have us very energized and highly focused on seizing the opportunities that lie ahead.”
In the second quarter, EMC's Information Infrastructure business increased revenue 4% compared with the year-ago quarter. Second-quarter revenue from EMC's Information Storage business accelerated to 4% year over year. Highlights within this include: 39% year-over-year revenue growth from EMC's Emerging Storage business,3 continued year-over-year revenue growth and market share gains from EMC's High-end Storage business,4 and improved year-over-year revenue growth from EMC's Unified and Backup Recovery business.5 EMC's RSA Information Security business increased revenue 3% year over year, and EMC's Information Intelligence business continued to make progress during the quarter on its transition to more cloud-friendly offerings and vertical-based solutions.
VCE had an excellent second quarter as demand for Vblock systems showed strong year-over-year growth. Additionally, EMC's VSPEX reference architecture solutions continued to gain momentum with rapid adoption and increasing popularity with customers and among partners who have sold over 3,600 VSPEX solutions since their launch in April 2012.
In the second quarter, VMware (NYSE: VMW) achieved solid double-digit year-over-year revenue growth. The company continues to excel because it is uniquely positioned to help customers move from the client-server era to the mobile-cloud era of computing. As VMware helps customers bridge to this new world, it is empowering them to capture new levels of efficiency, control and agility.
On April 1, 2013, EMC and VMware formed a new company – Pivotal – 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 also announced a strategic investment by General Electric Company (GE) of approximately $105 million in the company, representing a 10% equity stake. Pivotal made very good progress in its first quarter within the EMC federation, and is building a new platform comprising next-generation data fabrics, application fabrics and a cloud-independent platform as a service. In the second quarter, the company announced the first version of this platform for next-generation big and fast data applications, called “Pivotal One,” which will be launched before year end.
EMC's consolidated second-quarter revenue from the United States increased 4% year over year to $3.0 billion, representing 53% of consolidated second-quarter revenue. Revenue from EMC's business operations outside of the United States increased 8% year over year to $2.7 billion and represented 47% of consolidated second-quarter revenue. Within this, on a year-over-year basis, revenue from EMC's Europe, Middle East and Africa region grew 6%, revenue from EMC's Asia Pacific and Japan region increased 12%, and revenue from EMC's Latin American region grew 12%. Revenue from EMC's BRIC+13 markets increased 18% year over year.
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.
, a part of , enables organizations to modernize, automate and transform their using industry-leading , servers, and data protection technologies. This provides a trusted foundation for businesses to transform IT, through the creation of a , and transform their business through the creation of cloud-native applications and 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.