EMC reports double digit revenue growth

24 Jul 2007

Storage and software giant EMC reported a 21pc increase in second quarter revenues of US$3.1bn. The company attributed the performance to an explosion in digital content and a positive IT spending outlook for 2007.

EMC, which employs 1,500 people in Ireland, reported a profit of US$334.4bn, up 33pc on the previous year.

The company generated an operating cash flow of US$622m, a 59pc increase and free cash flow of US$422m, a 123pc increase on last year.

“EMC executed well in the second quarter,” the company’s chief executive Joe Tucci commented. “Customers continued to choose EMC for the depth and breadth of our information infrastructure technologies and solutions, which translated into solid revenue growth that was well balanced across our systems, software and services businesses and all major geographies.

“Add to this the explosion of digital information and the positive 2007 IT spending outlook we see in all major geographies, and it is clear that we are in a sweet spot of the IT industry,” Tucci added.

EMC’s Information Storage business, saw revenues increase 12pc to US$2.5bn and its RSA IT security division saw revenues grow 21pc to US$125m, driven by demand for software, encryption and software tokens and smart cards.

EMC’s Content Management and Archiving business grew second quarter revenues to US$174m, up 5pc on last year.

The company’s enterprise software subsidiary VMware grew sales 89pc year over year to US$298m due to growing demand for virtualisation technology.

Intel recently came in as a strategic investor in the VMware division and a partial flotation of the company is expected to be completed this summer.

By John Kennedy