EMC Posts Broad Q3 Revenue Gain
EMC reported double-digit revenue growth for the third quarter on Wednesday and forecast another revenue gain in the fourth quarter despite global economic woes.
The company's revenue grew 13 percent from last year's third quarter to US$3.7 billion, with 11 percent gains in both its information storage business and its RSA security division.
Net income according to GAAP (Generally Accepted Accounting Principles) was $411 million, or $0.20 per share, down from $492 million, or $0.23 per share, a year earlier. But not counting a special income-tax benefit and other one-time items, EMC had net income of $528 million, or $0.25 per share, up 14 percent from last year's third quarter.
The non-GAAP profit figure beat analysts' estimates of $0.19 per share, while revenue essentially matched the analysts' forecasts.
Sales gains in the U.S. lagged behind the rest of the world, with revenue growing 7 percent year-over-year in the U.S. compared with 19 percent for areas outside. The company got 46 percent of its revenue from outside the U.S. Revenue increased 20 percent in Europe, the Middle East and Africa, 19 percent in Asia-Pacific and Japan, and 27 percent in Latin America, EMC said.
For the fourth quarter, EMC forecast total revenue of $4 billion and earnings per share between $0.23 and $0.24, both of which would represent gains over last year's fourth quarter. The company estimated non-GAAP earnings at $0.30 or $0.31.
"Even with a challenging economic environment ahead, we remain confident and well positioned to compete effectively, continue winning business and outpace our peers in the marketplace," EMC Chairman, President and CEO Joe Tucci said in a prepared statement.