EMC Corporation today reported first-quarter 2013 financial results that were highlighted by first-quarter records for consolidated revenue, non-GAAP net income, non-GAAP EPS and operating and free cash flow.
First-quarter revenue was $5.39 billion, an increase of 6% compared with the year-ago quarter. First-quarter GAAP net income attributable to EMC was $580 million and first-quarter GAAP earnings per weighted average diluted share were $0.26. Non-GAAP1 net income attributable to EMC was $850 million, an increase of 4% compared with the year-ago quarter. Non-GAAP1 earnings per weighted average diluted share were $0.39, an increase of 5% year over year.
During the first quarter, EMC increased operating cash flow and free cash flow2 on a year-over-year basis to $1.71 billion and $1.44 billion, respectively. First-quarter GAAP and non-GAAP gross margins grew on a year-over-year basis, and the company ended the quarter with $12 billion in cash and investments.
Joe Tucci, EMC Chairman and Chief Executive Officer, said, “EMC’s solid first-quarter financial results speak to the strength of our execution and the soundness of our strategy that offers customers greater efficiency, control, choice and agility. Our three federated businesses – EMC Information Infrastructure, VMware and Pivotal – are squarely focused on areas of IT that are expected to experience high growth over the next decade: cloud computing, Big Data and trusted IT. Each business is chartered to build its own technology and partner ecosystem necessary to succeed, while staying aligned to leverage one another’s strengths and to create value for our customers and shareholders. I am incredibly energized by the strength of our business model and the way we have positioned the company to lead this transformative era in information technology.”
David Goulden, EMC President and Chief Operating Officer, said, “EMC’s focus on cloud computing, Big Data and trusted IT helped drive solid revenue, non-GAAP net income and non-GAAP EPS growth in the first quarter. 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 capitalize on the opportunities ahead. Our first-quarter results are consistent with the full-year revenue and non-GAAP EPS outlook we provided in January, which remains unchanged. With continued steady execution, we expect that EMC will achieve our previously stated longer-term potential of more than $30 billion in revenue in 2016 with non-GAAP EPS growth outpacing revenue growth during this timeframe.”
First-quarter revenue from EMC’s Information Storage business grew 3% year over year. Highlights within this include: revenue from EMC’s High-end Storage business3 increased 10% year over year, and revenue from EMC’s Emerging Storage business4 increased 24% year over year. EMC’s RSA Information Security business increased revenue 12% year over year, and EMC’s Information Intelligence business returned to growth, increasing revenue 7% year over year.
EMC’s VSPEX reference architecture solutions continued to gain momentum with rapid adoption and increasing popularity with customers and among partners who have sold just under 2,200 VSPEX solutions since their launch in April 2012. Demand for VCE’s Vblock systems also showed strong year-over-year growth in the first quarter. Finally, EMC continued to expand its Service Provider Program with first-quarter revenue from service provider partners up over 40% year over year.
VMware (NYSE: VMW), the global leader in virtualization and cloud infrastructure, grew revenue 13% year over year. Visit http://ir.vmware.com for more information about VMware’s first-quarter financial results.
EMC’s consolidated first-quarter revenue from the United States increased 8% year over year to $2.8 billion, representing 53% of consolidated first-quarter revenue. Revenue from EMC’s business operations outside of the United States increased 4% year over year to $2.6 billion and represented 47% of consolidated first-quarter revenue. Within this, on a year over year basis, revenue from EMC’s Europe, Middle East and Africa region grew 1%, revenue from EMC’s Asia Pacific and Japan region increased 4%, and revenue from EMC’s Latin American region grew 27%. Revenue from EMC’s BRIC+13 markets increased 10% year over year.