EMC posts record Q2 earnings

EMC Corporation, which works on infrastructure technology also known as storage, and which owns a good chunk of VMware, has released its Q2 financial results and they’ve broken records. 

Consolidated revenue came in at $4.02 billion which is up 24 percent from the same time last year. It managed to get a record operating cash flow and free cash flow of $2.1 billion and $1.6 billion respectively – 44 percent and 47 percent growth year-on-year. By the end of the quarter it had raked in $10.3 billion in cash and investment.

EMC partially puts its positive results down to strong customer demand and revenue growth for its Symmetrix storage portfolio which saw a 32 percent growth. Its mid-tier storage product portfolio grew 33 percent, while its Backup and Recovery Systems Division saw increased adoption along with Data Domain and Avamar back-up tech – altogether bringing in over a billion dollars. 

And EMC’s majority-owned VMWare has continued to grow and grow. Its revenue forecasts completely trounced expectations on the stock market. Analyst for Jefferies & Co Katherine Egbert told Reuters that, in server virtualisation, “VMware owns the market”. Revenue was at $674 million for the quarter which beat the snot out of the average forecast of $657 million. It has increased 48 percent year-on-year.

EMC also thinks its RSA information security line has done well for it, growing 18 percent in revenue year-on-year.

Based on current expectation, EMC reckons in 2010 it will exceed its earlier outlook of $16.5 billion in revenue. Its consolidated restructuring and acquisition related charges, stock based compensation expense and intangible asset amortisation will be $0.02, $0.23 and $0.09 per diluted share, respectively, it reckons.