HOPKINTON, Mass. - January 27, 2016 -
EMC Corporation (NYSE:EMC) today reported fourth-quarter and full-year 2015 financial results.
Fourth-quarter consolidated revenue was $7 billion, flat year over year (up 3% on a constant currency basis2). GAAP net income attributable to EMC was $771 million in the fourth quarter, and GAAP earnings per weighted average diluted share was $0.39 in the fourth quarter. Non-GAAP1 net income attributable to EMC was $1.3 billion in the fourth quarter, and non-GAAP1 earnings per weighted average diluted share in the fourth quarter was $0.65.
Full-year 2015 GAAP and non-GAAP3 revenue was $24.7 billion and $24.8 billion, respectively, up 1% year over year (up 5% on a constant currency basis2. GAAP net income attributable to EMC for 2015 was $2 billion, and GAAP earnings per weighted average diluted share was $1.01. Non-GAAP3 net income attributable to EMC for 2015 was $3.6 billion, and non-GAAP3 earnings per weighted average diluted share for 2015 was $1.82.
EMC generated $1.9 billion in operating cash flow and $1.5 billion in free cash flow4 in the fourth quarter, and ended the quarter with $14.8 billion in cash and investments. EMC returned approximately $229 million to shareholders via a quarterly dividend.
Joe Tucci, EMC Chairman and CEO, said, “The fourth quarter of 2015 follows 24 consecutive quarters of reported year-over-year top-line growth; an accomplishment very few of our peers have matched. 2015 brought geopolitical and other market-wide uncertainties, while secular technology trends continued to accelerate. EMC anticipated and focused on capturing the massive growth opportunity these trends will avail, and we are well equipped in 2016 with some of the most exciting technology advancements in our history.”
Tucci added, “Together, EMC and Dell will be better positioned in the market. We believe that the coming together of the companies is the best strategic option for all stakeholders. I'm pleased to report that progress on closing the transaction remains on track under the original terms and timeline.”
Zane Rowe, EMC CFO, said, “As we work toward closing the transaction with Dell to build one of the world's premier IT powerhouses, we continue to focus on synergies and operating efficiencies across our business. Our previously announced $850 million cost reduction and business transformation plan is on track and the initial $50 million cost reduction target was met in Q4. We are confident that we will exceed our goal, thanks to our unified team's effort and focus.”
David Goulden, CEO of EMC Information Infrastructure, said, “Customers are buying ‘just enough' and ‘just in time' for their traditional environments. They are also transforming existing IT systems toward a Hybrid Cloud or building and deploying new digital applications. In some cases they are doing it all simultaneously. Against this market backdrop, our storage business revenue grew 3% in constant currency for the full year. Looking forward, I am excited about our position in 2016 as we further expand our industry-leading Storage and Converged Infrastructure portfolio, which is built upon the architectural pillars of the modern data center – Flash, Scale-Out, Software Defined, Cloud Enabled and Trusted technologies.”
Fourth-Quarter and Full-Year 2015 Highlights
Consolidated fourth-quarter revenue from North America was flat year over year. Fourth-quarter revenue from the Europe, Middle East and Africa region was down 1% year over year (up 7% on a constant currency basis2). Asia Pacific and Japan fourth-quarter revenue was flat year over year (up 4% on a constant currency basis2). Latin America fourth-quarter revenue was down 16% year over year (down 5% on a constant currency basis2).
Given the announcement made on October 12, 2015 regarding EMC's entry into a definitive merger agreement, the company will not be providing outlook for its 2016 financial results.
Details will be provided during today's 8:30 a.m. ET live webcast for investors, which is available on the EMC Investor Relations website (http://www.emc.com/ir).
EMC Corporation is a global leader in enabling businesses and service providers to transform their operations and deliver IT as a service. Fundamental to this transformation is cloud computing. Through innovative products and services, EMC accelerates the journey to cloud computing, helping IT departments to store, manage, protect and analyze their most valuable asset — information — in a more agile, trusted and cost-efficient way. Additional information about EMC can be found at www.EMC.com.