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EMC positioned for 2016 opportunities

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EMC has reported fourth-quarter consolidated revenue of $7-billion, flat year over year (up 3% on a constant currency basis).
GAAP net income attributable to EMC was $771-million in the fourth quarter, and GAAP earnings per weighted average diluted share was $0.39 in the fourth quarter. Non-GAAP net income attributable to EMC was $1,3-billion in the fourth quarter, and non-GAAP earnings per weighted average diluted share in the fourth quarter was $0.65.
Full-year 2015 GAAP and non-GAAP revenue was $24,7-billion and $24,8-billion, respectively, up 1% year over year (up 5% on a constant currency basis. GAAP net income attributable to EMC for 2015 was $2-billion, and GAAP earnings per weighted average diluted share was $1.01. Non-GAAP net income attributable to EMC for 2015 was $3,6-billion, and non-GAAP3earnings per weighted average diluted share for 2015 was $1.82.
EMC generated $1,9-billion in operating cash flow and $1,5-billion in free cash flow in the fourth quarter, and ended the quarter with $14,8-billion in cash and investments. EMC returned approximately $229-million to shareholders via a quarterly dividend.
Joe Tucci, EMC chairman and CEO, says: “The fourth quarter of 2015 follows 24 consecutive quarters of reported year-over-year top-line growth; an accomplishment very few of our peers have matched. 2015 brought geopolitical and other market-wide uncertainties, while secular technology trends continued to accelerate. EMC anticipated and focused on capturing the massive growth opportunity these trends will avail, and we are well equipped in 2016 with some of the most exciting technology advancements in our history.”
He adds: “Together, EMC and Dell will be better positioned in the market. We believe that the coming together of the companies is the best strategic option for all stakeholders. I’m pleased to report that progress on closing the transaction remains on track under the original terms and timeline.”
Zane Rowe, EMC CFO, comments: “As we work toward closing the transaction with Dell to build one of the world’s premier IT powerhouses, we continue to focus on synergies and operating efficiencies across our business. Our previously announced $850-million cost reduction and business transformation plan is on track and the initial $50-million cost reduction target was met in Q4. We are confident that we will exceed our goal, thanks to our unified team’s effort and focus.”
David Goulden, CEO of EMC Information Infrastructure, says: “Customers are buying ‘just enough’ and ‘just in time’ for their traditional environments. They are also transforming existing IT systems toward a Hybrid Cloud or building and deploying new digital applications. In some cases they are doing it all simultaneously. Against this market backdrop, our storage business revenue grew 3% in constant currency for the full year. Looking forward, I am excited about our position in 2016 as we further expand our industry-leading Storage and Converged Infrastructure portfolio, which is built upon the architectural pillars of the modern data center – Flash, Scale-Out, Software Defined, Cloud Enabled and Trusted technologies.”
EMC Information Infrastructure business fourth-quarter revenue was down 4% year over year (down 1% on a constant currency basis) and full-year 2015 revenue was down 2% year over year (up 2% on a constant currency basis). Information Storage fourth-quarter revenue was down 4% year over year (flat on a constant currency basis) and full-year 2015 revenue was down 1% year over year (up 3% on a constant currency basis). EMC XtremIO ended the year with over $1-billion in revenue. VCE exited 2015 with an annualized demand5 run rate exceeding $3-billion. Virtustream ended the fourth quarter with the strongest quarterly bookings in its history.
VMware fourth-quarter and full-year GAAP revenue within EMC was up 10% and 9% year over year, respectively. Fourth-quarter and full-year non-GAAP revenue within EMC were both up 10% year over year (both up 13% on a constant currency basis). VMware customers continue to invest in Software-Defined Data Centers, Hybrid Cloud solutions and End-User Computing.
Pivotal continues to gain momentum as it helps the world’s largest enterprises successfully expand their digital capabilities, with fourth-quarter revenue up 25% year over year. Pivotal continues its transition to a subscription business model, with annual recurring revenue up 40% compared to the previous quarter with strong performance in all geographies and product areas, while continuing to expand its customer base across many industries including Automotive, Financial Services, Insurance, Retail and Telecommunications.
Consolidated fourth-quarter revenue from North America was flat year over year. Fourth-quarter revenue from the Europe, Middle East and Africa region was down 1% year over year (up 7% on a constant currency basis). Asia Pacific and Japan fourth-quarter revenue was flat year over year (up 4% on a constant currency basis). Latin America fourth-quarter revenue was down 16% year over year (down 5% on a constant currency basis).