EMC Profit Rises

Updated from 7:11 a.m.

EMC (EMC Quote) beat first-quarter estimates, riding 29% growth in its software license and maintenance business.

The Hopkinton, Mass., network storage company made $313 million, or 15 cents a share, for the quarter ended March 31, up from the year-ago $272 million, or 12 cents a share, before an accounting change. Revenue rose to $2.98 billion from $2.55 billion a year earlier.

Analysts surveyed by Thomson Financial were looking for a 13-cent profit on sales of $2.95 billion.

Compared with the first quarter of 2006, EMC systems revenue, which represents 44% of total first-quarter revenue, increased 6%; software license and maintenance revenue, which represents 40% of total revenue, increased 29%; and professional services, systems maintenance and other services revenue, which represents 16% of total revenue, grew by 21%.

First-quarter revenue from North America increased 16% compared with the same period a year ago and represents 58% of total reported revenue. First-quarter revenue from customers outside of North America grew 18% year-over-year, driven by strong double-digit revenue growth in Europe, Middle East and Africa, and across the Asia-Pacific region.

Shares rose 54 cents early Tuesday to $14.30.