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EMC revenue and income rise over 30%

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 Sayer writes for IDG News Service


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