EMC reports earnings increase

18 Oct 2011

Joe Tucci, chairman and CEO, EMC

Strong global demand for EMC’s products gave the provider of storage hardware solutions a 28pc boost in its third-quarter earnings.

Cloud computing demand has increased EMC’s sales and profit in recent quarters and the company is investing in its technology to address demand for more efficient ways to store and access larger troves of media and documents (“Big Data”), the Wall Street Journal reported.

EMC’s third-quarter profit came in at US$605.6m, or 27 cents a share. This marks an increase from US$472.5m, or 22 cents, a year earlier. Excluding restructuring-related charges and other items, earnings rose to 37 cents from 30 cents. Revenue rose 18pc to US$4.98bn.

Gross margin rose to 61.6pc from 59pc.

Revenue across EMC’s regions rose, as well. Revenue from the US increased 17pc to US$2.7bn. Sales in the Europe, Middle East and Africa region rose 15pc, revenue in Asia-Pacific went up 37pc and in Latin America, revenue increased 8pc.

“Global customer demand for our industry-leading products and services, which led to record quarterly financial results, is clear evidence that EMC is at the centre of the most transformative, disruptive and opportunity-rich trends in IT history – namely hybrid cloud computing and the explosion of Big Data,” said Joe Tucci, EMC chairman and CEO. 

“With the strategy, products and momentum in our favour, EMC remains extremely well positioned to help customers accelerate their journey to the cloud, discover the value of Big Data and transform IT into a source of greater efficiency, agility and control.”