EMC hits all targets, but US shutdown drags on sales

Despite hitting all its goals for the third quarter, EMC has professed itself disappointed thanks to a decline in US government spending

EMC has branded its performance during the third quarter of the financial year not good enough thanks to a slowdown in US federal spending and a backend-loaded quarter that will see over $100m of sales made in Q3 reported in January 2014 instead.

CEO and chairman Joe Tucci said the firm was disappointed in the results, which fell substantially short of targets even as consolidated sales rose by 5% year-on-year to $5.5bn (£3.4bn).

Net profit at EMC declined by just over 6% to $586m, the firm said, while there was better news on the operating cashflow side, up 25%.

Tucci said he remained confidence in the success of the firm’s overall strategy. “The EMC federation across Information Infrastructure, VMware and Pivotal continues to be well-positioned in our target markets and very well received by customers and partners.”

Key quarterly highlights for the firm included a strong performance on the Emerging Storage side, with the Isilon scale-out NAS portfolio, Atmos object-based storage, and VPLEX virtual storage all seeing strong demand.

Elsewhere, the RSA security business grew sales by 11% year-on-year, and Pivotal, its new company designed to foster closer co-operation between EMC and VMware, continued to execute well.

VCE turned in an excellent quarter, said EMC, with vBlock demand accelerating and VSPEX reference architecture solutions proving particularly appealing to the channel.

Finally VMware – which reported separately earlier this week – turned in double digit revenue growth, with sales up 14% to $1.49bn and net income up 67% to $261m.

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