EMC reports double-digit revenue growth


EMC reports double-digit revenue growth

Data storage supplier EMC reported second-quarter jumps in revenue and net income as its hardware and software sales rose, however, the company still describes the market as "challenging".

EMC reported second-quarter net income of $192.8m (£104m) compared with $81.74m in the same quarter a year ago. Revenue in the quarter amounted to $1.97bn, up 33% from $1.48bn last year.

While expressing satisfaction especially with his company's double-digit revenue growth, EMC president and chief executive officer Joe Tucci said the market remains challenging because customers continue to demand more from IT providers. Customers do not want to compromise, he said.

EMC saw growth across its product lines. The company had especially strong growth in the sales of its Clariion line of storage products for small and medium-sized businesses, which went from $228.3m last year to $326.1m in this year's second quarter.

EMC is also benefiting from the acquisitions of Legato Systems, completed last October, Documentum, completed last December  and VMware, which it completed in January.

VMware posted record revenue. The virtualisation software supplier contributed $47.2m to EMC's revenue in the second quarter, up from $39.3m in the first quarter.

Excluding Legato, Documentum and VMware, EMC revenue grew 19% year on year.

For the third quarter, EMC forecasts revenue of around $2bn.

Joris Evers writes for IDG News Service

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