Yet another IT company is proving its resilience in the face of looming recession: EMC has announced all-time record first-quarter revenues in its 19th consecutive quarter of double-digit year-over-year revenue growth.
EMC’s total consolidated revenue for the first quarter of 2008 was $3,47-billion, an increase of 17% over the $2,98-billion reported for the first quarter of 2007.
First-quarter GAAP net income was $268,8-million, or $0,13 per diluted share, which included a $79,2-million non-cash charge for in-process research and development (IPR&D) resulting from acquisitions completed during the quarter. Excluding this charge, net income was $348-million or $0,16 per diluted share.
Non-GAAP first-quarter net income, which excludes the IPR&D charge and other items, was $477,3-million or $0,23 per diluted share, 28% higher than the non-GAAP earnings per diluted share of $0,18 for the year-ago period.
During the quarter, EMC generated operating cash flow of $918,3-million, an increase of 14% compared with the same period a year ago, and free cash flow of $717,5-million, an increase of 22% year-over-year.
Joe Tucci, EMC chairman, president and CEO, says: “EMC is off to a solid start to the year, and we remain on track to achieve the 2008 financial targets we set for the business at the beginning of the year.
"We entered the year with the strongest and most diversified product, solutions and services portfolio in our history. From the consumer to the small- and medium-sized business and up through the enterprise, we are delivering to the market high-quality, innovative IT solutions faster than ever before.
"These offerings remain squarely aligned with top CIO spending priorities and are optimized to help businesses manage their information and drive IT efficiency throughout their organisations.
“Looking ahead, EMC’s growth opportunities are many as we continue to aggressively strengthen our core business, grow into new and adjacent markets and expand our presence around the globe,” Tucci adds. “The power of our technology portfolio positions us well to extend our leadership and continue gaining share.”
Compared with the first quarter of 2007, EMC systems revenue increased 10% and represented 41% of total first-quarter revenue. Software license and maintenance revenue increased 18% and accounted for 41% of total revenue. Other services revenue grew 30% and represented 18% of total revenue.
Revenue from North America increased 14% compared with the same period a year ago and represented 57% of total first-quarter revenue. Revenue from operations outside of North America grew 21% year-over-year, driven by double-digit revenue growth in each of EMC’s Europe, Middle East and Africa (EMEA), Asia-Pacific and Japan (APJ) and Latin America regions.