EMC's third quarter on target, ups 2010 outlook

Written by Larry Dignan, Contributing Editor

Larry Dignan Contributing Editor

Larry Dignan is the former Editor in Chief of ZDNet.

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Posted in Between the Lines on October 18, 2010 | Topic: Storage

EMC on Tuesday met earnings expectations for the third quarter and raised its outlook for 2010.

EMC reported earnings of $649.4 million, or 22 cents a share, on revenue of $4.21 billion. Non-GAAP earnings were 30 cents a share, in line with Wall Street estimates (statement).

As for the outlook, EMC projected non-GAAP earnings of $1.25 a share on revenue of $16.9 billion. Wall Street was projecting earnings of $1.21 a share on revenue of $16.7 billion.

EMC, which owns most of VMware, is benefiting from virtualization and demand for storage. In a statement, EMC CEO Joe Tucci said that the company can continue to grow at double-digit clip.

By region, EMC's sales in the U.S. were up 21 percent from a year ago. Sales to Europe, Middle East and Africa surged 54 percent from a year ago as Asia Pacific and Japan and Latin America delivered revenue growth of 28 percent and 23 percent, respectively.