EMC hits 19 per cent growth

Storage giant exceeds financial targets after banking $13.23bn revenues last year

Storage goliath EMC has announced that consolidated revenue for its fiscal full-year 2007 leapt 19 per cent to $13.23bn, despite subsidiary VMware recently falling short of Wall Street revenue forecasts.

The vendor’s fourth quarter and full fiscal year results revealed growth across Information Storage, Content Management & Archiving, RSA Information Security, and VMware Virtual Infrastructure business lines and its four major geographies.

Joe Tucci, chairman, chief executive of EMC, said: “2007 was truly a breakout year for EMC. It exceeded all of the aggressive financial targets it set out to achieve at the beginning of the year.

Tucci added: “The highly successful partial IPO of VMware clearly met its key goals. And EMC further organised around our ‘One EMC’ initiative to interlock and drive more technology and product integrations across our Information Storage, Content Management and Archiving, and RSA Information Security business units, making it much easier for our customers and partners to do business with EMC.”

Commenting further, Tucci said, “Looking forward, EMC has never been better positioned to continue to grow and gain market share. It has the best product line-up in its history with a very favourable product cycle, and its proven go-to-market model is firmly in place.”

“EMC is well positioned in the areas where IT spending will grow the fastest this year. Finally, EMC’s focus on innovation and R&D is enabling it to tackle emerging customer priorities such as Web 2.0, virtualization, compliance and new online methods for purchasing and consuming software.”

GAAP net income for 2007 was $1.67 billion or $0.77 per diluted share, 43 higher than the GAAP earnings per diluted share of $0.54 reported for 2006.

David Goulden, executive vice president and chief financial officer of EMC, said: “EMC exceeded its growth, profitability and free cash flow targets for the fourth quarter and for the year.

“By investing in its go-to-market model and worldwide market presence, strengthening its product portfolio, and expanding its strategic partnerships around the world, EMC enters 2008 with an even stronger foundation for continued financial success and market share gains,” he added.