Revenue up at EMC

17 Jul 2003

In a sign that its recovery is on course, data storage company EMC reported encouraging revenue and earnings growth in the second quarter 2003. Revenue for the quarter was US$1.48bn, 7pc higher than the US$1.39bn reported for the second quarter, 2002, while net income was US$82m, compared with US$1m for the same period last year.

Joe Tucci, EMC’s president and CEO, said: “The two words that best describe EMC’s second-quarter performance are solid and balanced … We are experiencing the benefits of a completely refreshed product portfolio, broadened services offerings and an expanded distribution network. All signs point to additional EMC market share gains during the second quarter and we expect that to continue through the remainder of 2003.”

The company, which employs 1,200 people in Ireland between a manufacturing plant in Ovens, Cork and a Dublin sales office, reported good gains in all its main product lines. The combined revenues from its Symmetrix DMX, Clariion CX and Centera systems, grew 7pc sequentially compared with the first quarter of 2003. Revenue from the high-end Symmetrix DMX series accelerated sharply and accounted for approximately 80pc of total Symmetrix systems sales in the second quarter.

Software revenue grew 8pc sequentially compared with the first quarter of 2003 while services revenue grew 7pc, led by an increase in software maintenance and consulting fees.

The company also reported that its cash and investment reserves amounted to US$6.1bn. This war chest will allow it to pursue its aggressive acquisitions strategy, the latest chapter of which was the announcement a week ago that it is to acquire storage software firm Legato for US$1.3bn.

In a forward-looking statement, the company said it expected revenue in the third quarter of 2003 to be between US$1.45bn and US$1.5bn and margins to be in line with the current quarter.

By Brian Skelly