EMC’s first-quarter 2013 financial results were highlighted by first-quarter records for consolidated revenue, non-GAAP net income, non-GAAP EPS and operating and free cash flow.
First-quarter revenue was $5,39-billion, an increase of 6% compared with the year-ago quarter. First-quarter GAAP net income attributable to EMC was $580-million and first-quarter GAAP earnings per weighted average diluted share were $0,26.
Non-GAAP net income attributable to EMC was $850-million, an increase of 4% compared with the year-ago quarter. Non-GAAP earnings per weighted average diluted share were $0,39, an increase of 5% year over year.
During the first quarter, EMC increased operating cash flow and free cash flow on a year-over-year basis to $1,71-billion and $1,44-billion, respectively. First-quarter GAAP and non-GAAP gross margins grew on a year-over-year basis, and the company ended the quarter with $12-billion in cash and investments.
“EMC’s solid first-quarter financial results speak to the strength of our execution and the soundness of our strategy that offers customers greater efficiency, control, choice and agility,” says Joe Tucci, EMC chairman and CEO.
“Our three federated businesses – EMC Information Infrastructure, VMware and Pivotal – are squarely focused on areas of IT that are expected to experience high growth over the next decade: cloud computing, big data and trusted IT.
“Each business is chartered to build its own technology and partner ecosystem necessary to succeed, while staying aligned to leverage one another’s strengths and to create value for our customers and shareholders. I am incredibly energised by the strength of our business model and the way we have positioned the company to lead this transformative era in information technology.”
“EMC’s focus on cloud computing, big data and trusted IT helped drive solid revenue, non-GAAP net income and non-GAAP EPS growth in the first quarter. We believe EMC is extremely well-positioned to grow faster than the IT marketplace, produce leverage in the business and continue to innovate and evolve to capitalise on the opportunities ahead,” says David Goulden, EMC president and chief operating officer.
“Our first-quarter results are consistent with the full-year revenue and non-GAAP EPS outlook we provided in January, which remains unchanged. With continued steady execution, we expect that EMC will achieve our previously stated longer-term potential of more than $30-billion in revenue in 2016 with non-GAAP EPS growth outpacing revenue growth during this timeframe.”
First-quarter revenue from EMC’s Information Storage business grew 3% year over year. Highlights within this include: revenue from EMC’s High-end Storage business increased 10% year over year, and revenue from EMC’s Emerging Storage business increased 24% year over year.
EMC’s RSA Information Security business increased revenue 12% year over year, and EMC’s Information Intelligence business returned to growth, increasing revenue 7% year over year.
EMC’s VSPEX reference architecture solutions continued to gain momentum with rapid adoption and increasing popularity with customers and among partners who have sold just under 2 200 VSPEX solutions since their launch in April 2012.
Demand for VCE’s Vblock systems also showed strong year-over-year growth in the first quarter. Finally, EMC continued to expand its Service Provider Program with first-quarter revenue from service provider partners up over 40% year over year.
VMware grew revenue 13% year over year.