EMC puts in 'solid and balanced' performance
Published: 16 Jul 2003 13:52 BST
Data-storage giant EMC reported stronger-than-expected second-quarter earnings on Wednesday, driven by sequential growth across all major segments of the company's business.
The Massachusetts-based storage hardware and software maker reported a profit of $82m (£51.18m), or 4 cents a share, on $1.48bn in revenue for the quarter ended 30 June. That compares with a profit of $1m, or breakeven, on $1.39bn in revenue during the same period last year.
EMC first reported it would beat second-quarter earnings estimates last week when the company announced plans to acquire storage-management software maker Legato Systems in a $1.3bn stock swap.
Wall Street had expected the company's net income to reach 3 cents a share on revenue of $1.46bn, according to First Call.
"The two words that best describe EMC's second-quarter performance are solid and balanced," EMC chief executive Joe Tucci said in a statement. "We are experiencing the benefits of a completely refreshed product portfolio, broadened services offerings and an expanded distribution network."
The positive second-quarter results were driven by growth across all major portions of EMC's business, with a 7 percent gain across its storage systems revenue, the company said. Revenue garnered from sales of the company's Symmetrix DMX series of networked storage systems accelerated, accounting for approximately 80 percent of all Symmetrix systems sales in the second quarter.
Storage-software revenue grew 8 percent during the second quarter, compared with the first quarter of 2003, EMC said. That figure would appear to indicate that EMC is achieving its much-publicised goal of increasing its high-margin storage software business.
EMC said it expects third-quarter revenue of between $1.45bn and $1.5bn on earnings of 4 cents per share. The company also reported that it expects the Legato acquisition to have an effect on earnings per share in 2004.
Let the editors know what you think in the Mailroom.
Did you find this article useful?
42 out of 106 people found this useful
Digg
Slashdot
Del.ici.ous
Stumble
Reddit
