EMC posts record Q1 revenues; VMware and RSA star performers

EMC’s first quarter results include record Q1 revenues. VMware and RSA show stellar growth and storage hardware lags, but COO says, “We’re on course for $30bn in 2016”

Storage giant EMC has reported record first quarter (Q1) revenues of $5.39bn, an increase of 5.75% compared with the same period a year ago. 

The company’s non-storage divisions – VMware, RSA and its information management products – were star performers in the Q1 results in terms of revenue increases while storage hardware lagged behind.

Total net income attributable to EMC was $850m, an increase of 4% compared with the first quarter of 2013.

All EMC’s product divisions saw increased revenues in the quarter, but VMware and security brand RSA saw the biggest year-on-year growth in revenue; 12.8% and 12.5% respectively.

EMC’s information intelligence division, which includes Captiva and Documentum document management solutions as well as SourceOne archiving and e-discovery products, saw a revenue boost of 7.1%.

The poorest performing of the EMC divisions was information storage, which comprises storage hardware, software and services. This saw a year-on-year revenue increase of just 3.3% in Q1. Revenues in this division grew by 5.65% year-on-year in the final quarter of 2012.

Despite poorer revenue growth, the information storage division towers over the others in terms of contribution to quarterly revenues, providing $3.8bn compared with VMware’s $1.19bn, RSA’s $232,308 and information intelligence’s $155,916.

VMware’s performance for this quarter is also down on its growth during 2012, which saw revenues grow 22% to $4.6m.

Revenue for this quarter is a little down on the previous one. Fourth quarter (Q4) revenue in 2012 was $6bn, and an increase of 8% year-on-year. Net income attributable to EMC for the fourth quarter of last year was also higher than for this one at $1.2bn.

In a prepared statement, David Goulden, EMC president and chief operating officer (COO), said: “We believe EMC is extremely well-positioned to grow faster than the IT marketplace, produce leverage in the business and continue to innovate and evolve to capitalise on the opportunities ahead. With continued steady execution, we expect that EMC will achieve our previously stated longer-term potential of more than $30bn in revenue in 2016.”

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