Storage giant’s revenues surge 25pc

23 Jan 2004

Storage giant EMC, which employs 1,200 people in Ireland between a manufacturing plant in Ovens, Cork and a Dublin sales office, has posted a 25pc increase in fourth quarter revenue on the strength of improved demand for its high-end data-storage technologies. The results came on the heels of EMC securing a US$40m contract with the Pentagon.

EMC said it earned US$220m, or 9 cents per share, including a net tax benefit of a penny per share that offset charges related to its purchases of software companies Legato Systems and Documentum. During the same period a year ago, EMC lost US$64 million, or 3 cents a share.

Revenue for the quarter ended 31 December totalled US$1.86bn, up from US$1.49bn in the year-ago period. The revenue results also topped EMC’s own forecasts of a range of US$1.8bn to US$1.825bn.

Total consolidated revenue for EMC’s full 2003 fiscal year was US$6.24bn, 15pc higher than the US$5.44bn reported for the full 2002 fiscal year. Net income for the full 2003 fiscal year was US$496m or 22 cents per diluted share, compared with a net loss of US$119m or five cents per share for the full 2002 fiscal year.

Joe Tucci, EMC’s President and CEO, said: “The strength of our broadened product portfolio, combined with outstanding execution and an improving global economy, made for a solid finish to 2003.

“Our information lifecycle management strategy is being well received by both long-standing and new customers who are grappling with the challenges of compliance, information protection and constrained budgets. EMC strengthened its market position and clearly gained share in 2003,” Tucci said.

By John Kennedy