Updated from 8:33 a.m. EDT
second-quarter earnings more than doubled from last year thanks to revenue improvement across its product lines, including solid gains at the software companies it has acquired over the last year or so.
In recent trading, shares were up 38 cents, or 3.7%, to $10.74.
The storage company earned $192.8 million, or 8 cents a share, in the three months to June 30, up from $81.7 million, or 4 cents a share, last year. Revenue rose 33% to $1.97 billion.
Revenue from software license sales rose 64% year over year, accounting for 27% of overall revenue; when software maintenance revenue is added to the figure, software as a whole constituted 36% of total revenue.
Analysts surveyed by Thomson First Call had been forecasting earnings of 8 cents a share on revenue of $1.97 billion in the most recent quarter. Looking ahead, EMC predicted third-quarter earnings of 8 cents to 9 cents a share on revenue of $2.0 billion, compared with Wall Street expectations of earnings of 9 cents a share on revenue of $2.0 billion.
At EMC's analyst day in June, the company set goals of total revenue for the year of $8.1 billion, net income of $850 million, gross margins over 50% and operating margins in the mid-teens. "We're well on our way" to reaching those targets, Chief Financial Officer Bill Teuber said on a call with analysts after the announcement Tuesday morning.
By segment, systems revenue rose 16% from a year ago, while software revenue rose 64% and services revenue rose 45% from a year ago. The latter two categories were boosted by the acquisitions of Documentum, Legato and VMware. EMC said overall core revenue, which excludes those divisions, rose 19% in the second quarter from a year ago.
The acquired companies performed well in the period, with Legato's software license revenue up 20% from a year ago, and overall revenue at Documentum rising 14% from last year. The company said its markets are "rich with opportunity yet challenging, as customers continue to demand more from IT providers."