EMC Q2 solid, ups outlook
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.