EMC Posts 20% Sales Gain

Earnings and guidance are consistent with forecasts.
Author:
Publish date:

Data-storage giant

EMC

(EMC)

said first-quarter earnings rose 93% from a charge-laden year-ago quarter, matching Wall Street estimates.

EMC earned $270 million, or 11 cents a share, in the quarter, compared with $140 million, or 6 cents a share, last year. Revenue rose 20% from a year ago to $2.24 billion. Analysts surveyed by Thomson First Call had been forecasting earnings of 11 cents a share on sales of $2.24 billion.

For the current second quarter, EMC expects to earn 12 cents a share on sales of $2.33 billion to $2.36 billion. Analysts were expecting earnings of 12 cents a share on sales of $2.33 billion. For the full year, the company sees earnings of 50 cents to 51 cents a share on sales growth of 16%. Analysts were expecting earnings of 51 cents a share on sales of $9.57 billion.

By segment, EMC said systems revenue rose 15% from a year ago to $1.03 billion, while license and maintenance revenue rose 26% from $832 million. Professional services revenue rose 26% to $375 million in the quarter.

EMC said revenue in its Clarrion networked storage division rose 47% from a year ago, reflecting "solid growth across all major geographic regions, particularly Europe, and in each of EMC's direct and indirect channels." Software group revenue rose 24% to $401 million.