EMC Corporation today reported record financial results for the third quarter of 2011. Continued strong worldwide customer demand for EMC’s information storage, security and virtualization products and services, balanced revenue growth and continued outstanding execution contributed to EMC achieving all-time record quarterly consolidated revenue and record third-quarter profit. The results were also highlighted by all-time record quarterly gross margins on a GAAP and non-GAAP basis and strong year-over-year increases in GAAP and non-GAAP operating margins.
Third-quarter consolidated revenue was $4.98 billion, an increase of 18% compared with the year-ago quarter. Third-quarter GAAP net income attributable to EMC increased 28% year over year to $606 million. Third-quarter GAAP earnings per weighted average diluted share increased 23% year over year to $0.27. Non-GAAP1 net income attributable to EMC for the third quarter was $822 million, an increase of 27% compared with the year-ago quarter. Third-quarter non-GAAP1 earnings per weighted average diluted share were $0.37, an increase of 23% year over year.
EMC’s cash flow generation continues to be strong, with trailing twelve-month operating cash flow of $5.0 billion and free cash flow2 of $3.8 billion. The company ended the third quarter with $9.3 billion in cash and investments.
Joe Tucci, EMC Chairman and Chief Executive Officer, said, “I am very pleased with EMC’s execution and solid third-quarter financial performance. Global customer demand for our industry-leading products and services, which led to record quarterly financial results, is clear evidence that EMC is at the center of the most transformative, disruptive and opportunity-rich trends in IT history – namely hybrid cloud computing and the explosion of Big Data. With the strategy, products and momentum in our favor, EMC remains extremely well positioned to help customers accelerate their journey to the cloud, discover the value of Big Data and transform IT into a source of greater efficiency, agility and control.”
David Goulden, EMC Executive Vice President and Chief Financial Officer, said, “The priorities we have outlined in our financial ‘triple play’– to gain market share, invest aggressively to take full advantage of the massive opportunities at the intersection of cloud computing and Big Data, and improve profitability – continue to guide us through 2011. We remain on track to exceed our full-year goal of $19.8 billion in revenue, GAAP EPS of $1.07 and non-GAAP EPS of $1.48. We are confident that our company strategy, disciplined investment approach and continued focus on execution, which have driven our success over the past several years, will continue to serve us well in the future.”
Third-quarter highlights included double-digit revenue growth for EMC Information Storage business, which increased 16% year over year. EMC’s high-end Symmetrix storage product portfolio increased revenue 7% compared with the year-ago quarter. EMC’s portfolio of mid-tier storage products3 grew revenue 28% year over year. Revenue from VMware, which is majority-owned by EMC, increased 32% and revenue from EMC’s RSA Information Security business grew 16% year over year.
Additional third-quarter highlights included strong revenue growth for the EMC VNX unified storage family and the company’s Backup Recovery Systems. Revenue from EMC’s portfolio of Big Data solutions, which includes EMC Isilon, EMC Atmos and EMC Greenplum, more than doubled year over year. During the quarter, customers also continued to increasingly turn to EMC’s broad consulting and professional services portfolio to build out their cloud architectures and transform their IT. Finally, VCE, the Virtual Computing Environment Company formed by Cisco and EMC with investments from VMware and Intel, continued to gain momentum as customer demand increased for best-of-breed converged infrastructure through the Vblock Infrastructure Platform.
EMC’s consolidated third-quarter revenue from the United States reached an all-time record of $2.7 billion, an increase of 17% year over year, representing 54% of consolidated third-quarter revenue. Revenue from EMC’s business operations outside of the United States reached $2.3 billion, an increase of 20% year over year, representing 46% of consolidated third-quarter revenue. Within this, revenue from EMC’s Asia Pacific and Japan region reached an all-time quarterly record, growing 37% year over year. Revenue from EMC’s Europe, Middle East and Africa and Latin America regions increased 15% and 8% year over year, respectively.