Revenue, profit for storage vendor EMC defies economic woes

EMC’s revenue grew 18 per cent in the second quarter ended June 30, a result the company attributed to massive growth in the data enterprises need to store.

The company brought in US$3.67 billion worldwide in the quarter, up from US$3.12 billion a year earlier. Revenue even rose 10 per cent in the U.S., defying the country’s economic woes, while gaining more in all of EMC’s other regions around the world. The results beat expectations of analysts, who had predicted revenue of US$3.56 billion, according to a Thomson Financial survey.

“Despite continued economic uncertainty at the macro level, we believe spending on information infrastructure and virtual infrastructure technologies will continue to grow,” said Joe Tucci, EMC’s chairman, president and CEO, in a prepared statement.

The sales gains boosted EMC’s profit as well, with net income reaching US$377.5 million, or US$0.18 per share, up from US$334.4 million, or US$0.16 per share, in last year’s second quarter.

Information Storage, the company’s largest business, saw revenue grow 14 per cent to US$2.87 billion. EMC said high points included midrange storage systems connected to Internet Protocol networks, as well as consulting and implementation. Meanwhile, the company’s RSA security division had a 15 per cent gain to US$144 million, EMC said.

EMC derived a record 48 per cent of its revenue from outside the U.S. in the quarter. The news was particularly good there, as both Asia-Pacific and Japan and Europe, Middle East and Africa had 27 per cent gains in revenue from a year earlier. Latin America revenue grew 24 per cent.

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