Revenues up at EMC, flat at Apple

17 Apr 2003

Data storage systems manufacturer EMC has reported that revenues for its first financial quarter were up 6pc to US$1.38bn, which it says reflects strong demand for storage systems.

Net income for the quarter at EMC was US$35m, compared with a net loss of US$77m in the first quarter of last year. EMC’s president Joe Tucci says that the company’s product innovation engine is in overdrive. “We continue to earn the confidence of new and existing customers by delivering market-leading price/performance through the broadest portfolio of storage platforms, software and services in EMC’s history. As a result, I believe we again gained market share during the first quarter.”

The revenue results collided with news that EMC has acquired Astrum Software Corporation, a privately-held supplier of storage resource management software for multi-platform, mid-tier storage environments. The acquisition includes approximately 30 employees and Astrum Software’s portfolio of storage management software. Financial terms of the acquisition were not disclosed.

Meanwhile at personal computer manufacturer Apple, the news was not so encouraging. The company made a profit of US$14m on sales of US$1.475bn in its second fiscal quarter. However, this marks a decline of 65pc and 1pc respectively over the same period last year. Nevertheless, the results mark a return to profitability at Apple over the last quarter, when it lost US$8m during the first quarter.

Mac shipments fell 4pc to 711,000 during the second quarter. Interestingly, over 40pc of the Mac shipments were notebook computers.

The revenue news clashes with speculation that Apple is eyeing up the possibility of a US$6bn merger with Vivendi’s Universal Music Group.

By John Kennedy