EMC Reports Record Profit and Revenue in Q4, Driven by VMware and Sales in Asia | News | ChannelWorld.in

PARTNER HOTLINES

EMC Reports Record Profit and Revenue in Q4, Driven by VMware and Sales in Asia

Added on Jan 30, 2013 by Peter Sayer

EMC saw fourth-quarter revenue rise 8 percent, driven mainly by strong performance at its VMware subsidiary, while net income rose 5 percent, both record figures for the company.

Revenue totaled US$6 billion for the fourth quarter, up 8 percent year-on-year, the company reported Tuesday, while net income hit $870 million, up 5 percent.

EMC expects earnings to grow faster than revenue this year, EMC President and COO David Goulden said in a conference call with analysts. Revenue for the full year 2012 totaled $21.7 billion, and should reach $23.5 billion this year, growing faster in the second half than the first, he said.

"Our strategy continues to be focused on cloud, big data and trusted IT," he said.

Much of the growth in EMC's fourth-quarter revenue came from virtualization subsidiary VMware, where revenue totaled $1.29 billion, up 22 percent year on year. Growth at that division is slowing, though, prompting VMware to announce 900 job cuts while reporting its results earlier Tuesday.

Fourth-quarter revenue from EMC's high-end and midtier networked storage platforms rose 6 percent year-on-year, as did revenue from its Symmetrix storage products.

Growth in midtier storage product sales, including the Isilon NAS range, slowed to 5 percent in the fourth quarter, down from 9 percent for the full year, Goulden said.

The company also said demand for flash-based caching and storage remained strong.

"Over half of our storage arrays go out with some amount of flash. Customers are taking advantage of that in a hybrid array," he said.

The importance of flash is not necessarily best measured by the share of storage that it represents: For some customers, flash might represent just 5 percent of storage but account for 80 percent of input-output operations per second, Goulden said.

Chairman and CEO Joe Tucci added that some products would have more flash storage, however. "You will see multiple announcements where we're playing on the all-flash storage side and multiple products playing in hybrid," he said.

EMC's security division, RSA, saw overall revenue decline 3 percent to $235 million, with a marked shift from products to services.

Around the world, revenue from the U.S. grew 5 percent to $3.1 billion. It now accounts for 52 percent of EMC's revenue. Outside the U.S., revenue grew at 12 percent, with the fastest growth, at 19 percent, in Asia Pacific and Japan.

Peter Sayer covers open source software, European intellectual property legislation and general technology breaking news for IDG News Service. Send comments and news tips to Peter at peter_sayer@idg.com.

Latest Videos

How We Deal With the Government Sector: Jaimin Patel, E-Connect Solutions

Perseverance, patience and endurance are key to succeed in the government sector, says Jaimin Patel, Director, E-Connect Solutions, who derives 70 percent of his revenue from the government sector.

Converged Security is the Next Big Thing for Channels: Ranjit Nambiar, HID Global

The blurring lines between physical and IT security in today's organizations will increase the business potential for channel partners, says Ranjit Nambiar, Director, IAM, India & SAARC, HID Global.

Our End-to-End Security Story Will Benefit Channels: Sunil Sharma, Cyberoam

A stronger R&D team, an enhanced portfolio and robust channel ecosystem will accelerate our continued growth in the security space, says Sunil Sharma, Vice President, Sales & Operations, India & SAARC, Cyberoam (a Sophos Company).

Cloud, Analytics Accelerating Storage Demand: Gurpreet Singh Bhatia, Arrow PC Network

New-age solutions like flash storage will be key drivers of growth, says Gurpreet Singh Bhatia, MD, Arrow PC Network.

EDITOR'S PICK

19 free cloud storage options

The cloud is full of free storage, if you know where to look.

4 tips to help CEOs find their CIO soulmate

The role of a CIO involves more than overseeing the technological infrastructure of a company. A good CIO will demonstrate strong communication skills, flexibility and an ability to adapt and change. It can never be stated enough, but working in IT means you will be expected to keep up to date on changing and emerging trends in the industry.

Security Innovation: Where Will it Come From Next?

For years, security innovation rarely came from large established companies. Are startups the best and only place to bring true security innovation to the market?

SLIDESHOWS

CIO Survey: What’s Inside Your Customer’s Mind (Cloud Computing)

A look at the findings of the State of the CIO 2014 survey and the challenges, benefits, and strategies of cloud computing that are keeping your customers on their toes. As their channel partners, here's what you need to know.

CEO Comebacks: For Better or for Worse?

We bring to you six global CEOs who made the idea work, or not.

Datacenters in the Weirdest Places

A peek into some of the most unusual datacenter locations in the world. Here are 13 datacenters that are built in unusual locations like mines, ships, trucks and even a nuclear collidor. Taking about common wisdom, eh?

6 Leaders Who Headed for an Abrupt Exit

The abrupt exit of top leaders of Indian and global tech companies this year, with many of them citing ambiguous reasons, surprised the technology world.

India's Leading VADs

Why Channels Want to Partner With Inflow Technologies

Inflow Technologies’ tie up with 39 vendor companies, an extensive tech portfolio, and a services play, are great value propositions for enterprise channels, says its President and CEO, Byju Pillai.

iValue Creates Real Value for Channels in India

Focused on niche vendor alliances around data, network and app management backed by a robust channel ecosystem marked iValue's success in 2014. What clicked for the seven-year-old VAD?

RAH Infotech Shows Channels the Way Ahead

Mutual trust and long lasting bond with vendor companies and channel partners helps VADs to evolve and succeed in today’s aggressively competitive market. Leveraging competent channel partners and forge niche vendor alliances marks RAH Infotech’s success in 2014.

How Satcom Infotech is Adapting to New Security Landscape

As a leading value added distributor, Satcom Infotech is emerging as an end-to-end security player, helping both customers and partners grow.

How ComGuard Shields Channel Partners

As emerging technologies introduce new threats to the enterprise landscape, they are making channel partners anxious. But VADs like ComGuard are putting their worries to rest. Here's how.

Tech Chat

Collaborating To Outcome Based World: Priyadarshi Mohapatra, Avaya

Priyadarshi Mohapatra, Managing Director, India and SAARC, Avaya, on how IT is transitioning from a keep-the-lights-on role to one that enables customers to deliver results.

The Dawn of the Digital Age: Akhilesh Tuteja, KPMG

The development of digital infrastructure will be a key growth driver for technology and solution providers. 

Paradigm Shift from End-Users to User-First : Parag Arora,Citrix

Parag Arora, Area Vice President and India Head, India Sub-continent, Citrix, says new technologies will force organizations to take a user-first approach in 2015.

Mobile and Cloud Are Gamechangers of the Future: Karan Bajwa, Microsoft

Karan Bajwa, Managing Director, Microsoft India, says, in  2015, organizations will adopt a mobile-first and cloud-first strategy to get ahead of competition.

A Network for the Internet of Everything : Dinesh Malkani,Cisco

Dinesh Malkani, President, India and SAARC, Cisco, talks about IoT and the significant technology transitions in the networking world.

Moving to the Third Platform: Jaideep Mehta, IDC

Cloud and mobility are the two technologies that will fuel the rapid adoption of the third platform in India.

Envisaging a Holistic Security Strategy For 2015: Sanjay Rohatgi,Symantec

Sanjay Rohatgi, President–Sales, Symantec India, says the company has a set of holistic solutions in place to secure organizations from security threats. 

Beating the Bad Guys: Sivarama Krishnan, PwC

Organizations will need to turn inwards to establish robust information security strategies.

Building Capabilities for a Digital Tomorrow: Alok Ohrie,Dell

Alok Ohrie, President and Managing Director, Dell India, on the company’s investments to build end-to-end solutions and delivery capabilities for a digital world.

FAST TRACK

Kamtron Systems

Transitioning towards a service-oriented company will boost our growth, believes Kavita Singhal, director, Kamtron Systems.

TIM Infratech

Delivering ‘best of breed’ technologies to enterprises is key to success, says Monish Chhabria, MD, TIM Infratech

Mudra Electronics

A vendor-agnostic strategy helped us sustain business, says Bharat Shetty, CMD, Mudra Electronics.

Systematix Technologies

Our USP is a customer-friendly approach backed by services, says Akhilesh Khandelwal, Director, Systematix Technologies.

CorporateServe Solutions

Our ability to turnaround complex ERP projects in record time is what gets us customer referral, says Vinay Vohra, Founder & CEO, CorporateServe Solutions.

KernelSphere Technologies

We are emerging as an end-to-end systems integrator, says Vinod Kumar, MD, KernelSphere Technologies.

Uniware Systems

We constantly validate emerging technologies for first-mover advantage, says Vergis K.R., CEO, Uniware Systems.

Astek Networking & Solutions

An innovative approach helps us stay successful, says Ashish Agarwal, CEO, Astek Networking & Solutions.

CSM Technologies

Our approach is backed by innovation and simplicity, says Priyadarshi Nanu Pany, CEO, CSM Technologies.

SOCIAL MEDIA @ CW India
SIGNUP FOR OUR NEWSLETTER

Signup for our newsletter and get regular updates.