EMC’s (news, site) earning for the second quarter jumped dramatically by 28%, which the company is attributing to increased spending on storage products and software licenses, as well as to a growing interest in its Big Data products and cloud computing offerings.
There’s little bad news in the figures for EMC, which has seen double-digit growth in most of its product categories -- with the notable exception of information intelligence products, which is still down but heading in the right direction.
Basking in the glow of its results in Big Data and cloud products, Joe Tucci, EMC Chairman and Chief Executive Officer, said it reflected the success of its underlying strategy in these areas, suggesting that we’ll be seeing more of the same in the coming year.
In a statement issued with the results, he said EMC’s performance:
…was marked by balanced growth, solid execution and significant technology innovation as customers around the world continue to embrace EMC’s cloud computing and Big Data strategies. It is our firm belief that this strategy is well-placed and underpinned with winning products…”
EMC’s Q2 Revenues
Overall, Q2 revenues hit US$ 4.85 billion, up 20% on the same quarter last year, while net income rose to US $546.5 million, up 28% on 2010's Q2.
Breaking the figures down, highlights show double-digit revenue growth for EMC Information Storage business, up 19% year over year. EMC’s high-end EMC Symmetrix storage product portfolio also performed well with revenues from EMC Symmetrix VMAX, up 15% compared with the the same quarter a year ago, while EMC’s portfolio of mid-tier storage products up was 27% year on year.
One of the things that the markets are watching closely is the performance of VMWare (news, site) and sure enough, it didn’t disappoint. Revenues there increased 37%, while RSA put in an impressive showing, with its business growing 13% over the quarter.
The only fly in the ointment was a relatively poor showing in its information Intelligence space. Revenues of US $169.3 million were disappointing for the company, representing a 5.1% year-on-year decline. That said, the figures seem to be heading in the right direction as they also represent a 5.6% rise for first quarter results of this year.
U.S. vs. Rest of the World
And growth wasn’t confined to the U.S. Revenue from EMC’s business operations outside of the United States hit an all-time record US $2.3 billion, representing 48% of its business over the second quarter. Within these figures is an increase of 20%, 34% and 43% year over year, respectively, in EMC’s Europe, Middle East and Africa; Asia Pacific and Japan; and Latin America regions.
David Goulden, EMC Executive Vice President and Chief Financial Officer, said the figures are the result of a strategy that focused on gaining market share, investing aggressively to take advantage of the opportunities at the intersection of cloud computing and Big Data, and improving profitability.
Our focus on providing technology and services that accelerate our customers’ journey to the cloud and enable them to leverage their data for more competitive advantage is resonating strongly in the market,” he said.
Citing Brent Bracelin, an analyst at Pacific Crest Securities, financial analysts Bloomberg said EMC is benefiting from an increased demand for mid-priced storage products that is helping to offset the slower uptake of more expensive technology.