EMC posts impressive third-quarter results

Storage giant sees ninth consecutive quarter of growth as all business segments increase

EMC grew its profit by 94 per cent to $422m during its third quarter and recorded growth in all of its major business segments, compared with the same period last year.

The vendor also generated a 17 per cent increase in total turnover to $2.37bn for the period ended 30 September compared with the same period last year.

EMC told CRN the Q3 results marked its ninth consecutive quarter of double-digit year-over-year revenue growth.

Last week, Joe Tucci was made chairman of the storage giant, a post he will fill from January. He will also remain as president and chief executive, positions he has held since 2001.

Speaking about the results, Tucci said in a statement that the vendor’s growth was driven by expanded services business, mid-tier storage system sales, EMC software and its VMware business division, among other areas.

“Few companies in our industry have been able to match the record of consistency and execution that EMC has achieved so far this year. Each of our major business segments and geographies continued to grow by double digits during Q3,” Tucci said.

EMC’s systems revenue also increased by 15 per cent to $1.09bn, compared with the same period last year. The company’s software licence and maintenance revenue recorded a 16 per cent increase to $865m, representing 37 per cent of EMC’s total revenue.

Professional services, systems maintenance and other services revenues grew by 25 per cent for the second consecutive quarter to $402m. EMC also said this sector represented one of its fastest-growing business lines.

Nigel Ghent, marketing director for UK and Ireland at EMC, said the results highlighted the storage giant’s “continued execution of commitment to partners”.

“Our channel partners are a fundamental product and service key to growing EMC. They have helped us to achieve these figures.

“We are taking share from competitors through organic and acquisition growth and our continued success will be positive for our channel partners,” Ghent said.

Jeanne Razzell, commercial director of EMC VAR Systems Support, said EMC’s strong showing could only be a good thing for its channel.

“We are very happy with the results. EMC is in the right place at the right time. We have seen an increase in Dantz Retrospect sales and for EMC partners things can only get better,” she said.