EMC revenue for the third quarter grew 34% year-on-year,
driven by software and services sales.
Consolidated revenue for the three months to 30 September
totalled $2.03bn (£1.12bn), up 34% from $1.51bn a year earlier,
while net income rose 37%, from $159m to $218m, over the same
period.
The company saw particularly strong revenue growth from its
Clariion, Centera and network attached storage businesses,
collectively up more than 50% year on year, and in software
licensing, up 56% over last year, it said. Software revenue growth
was driven by the acquisitions of Documentum, Legato and VMware, it
said.
VMware in particular has prospered under EMC's control, with
revenue of $61m for the quarter, up more than 200% compared to a
year earlier.
EMC expects revenue to continue growing in the fourth quarter,
to between $2.23bn and $2.27bn.
However, the company is slowing its investment in development of
new products: research and development spending slipped to 10.6%
of revenue in the third quarter, compared to 11.4% a year earlier,
and an average of 12.1% over the first three quarters of last
year.
The company may be looking to acquire new technologies rather
than develop them in house, as it noted good returns from
investments made to broaden its product portfolio and reach new
customers in high-growth markets.
Peter Sayerwrites for IDG News Service
