EMC Q2 solid, ups outlook

Summary:EMC said its XtremIO all-flash storage array is on a $300 million annual run rate and is landing new customers.

Storage giant EMC delivered strong second quarter results that were in line with expectations. The company benefited from a rebound in storage sales, growth at VMware and its Pivotal big data unit.

The company reported second quarter earnings of $589 million, or 28 cents a share, on revenue of $5.9 billion, up 5 percent from a year ago. Non-GAAP earnings were 43 cents a share and in line with expectations.

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EMC also said it will boost its share buyback plan. The company is fending off an activist shareholder who wants EMC broken up.

In a statement, EMC CEO Joe Tucci said the company is landing new customers and benefiting from increased spending from existing ones.

As for the outlook, EMC projected 2014 revenue of $24.57 billion with earnings of $1.30 a share and non-GAAP earnings of $1.91 a share. That outlook was a bit better than expected.

By the numbers:

  • EMC's information infrastructure division saw second quarter revenue gain 1 percent from a year ago to $3.98 billion. The sales were dragged down by high-end systems. EMC did say its XtremIO all-flash storage array is on a $300 million annual run rate.
  • Pivotal second quarter revenue was up 29 percent from a year ago to $54 million.
  • VMware, which reported last night, saw revenue jump 17 percent.
  • US revenue was up 3 percent from a year ago with EMEA up 12 percent and Latin America growing at a 14 percent clip.
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Topics: Storage, EMC

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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