EMC Corp 2nd-quarter profit rises 7.8 percent

AP News
Posted: Jul 24, 2013 10:06 AM

HOPKINTON, Mass. (AP) — EMC's second-quarter net income was driving higher by nearly 8 percent thanks to surging demand data storage equipment.

The company affirmed its full-year profit and revenue guidance, and its shares jumped more than 6 percent in early trading.

For the quarter ended June 30, EMC earned $701 million, or 32 cents per share, compared with $650 million, or 29 cents per share, last year. Adjusted to exclude stock-based compensation expenses, amortization costs and other items, earnings were 42 cents per share.

Revenue rose 5.7 percent to $5.61 billion from $5.31 billion, with both product sales and services logging gains.

U.S. revenue, which represents just over half of all revenue for the company, rose 4 percent. Revenue outside of the U.S. jumped 8 percent. The Asia Pacific and Japan and the Latin American regions both posted double-digit gains, EMC said.

"The strength and demand we saw during the quarter, despite a cautious IT spending environment, speaks to the soundness of our strategy, the value customers see in our federated business model, and the massive opportunity ahead in cloud computing, big data and trusted IT," Joe Tucci, EMC chairman and CEO, said in a statement.

The results come a day after EMC's majority-owned subsidiary VMware Inc. posted a 27 percent jump in second-quarter net income, helped by growing demand for its virtualization software.

During the second quarter, EMC and VMware formed a new company called Pivotal, which very good progress" in its debut, according to EMC. It is scheduled to launch the first version of its new platform for next-generation big and fast data applications by year-end.

EMC expects 2013 earnings per share of $1.85 and revenue of $23.5 billion. That's slightly better than the $1.86 per-share earnings and revenue of $23.42 billion projected by Wall Street.

The Hopkinton, Mass., company also said it expects to repurchase $3.5 billion of its stock in 2013 and the first half of 2014.

In morning trading, shares of EMC Corp. added $1.69 to $27.02.