EMC has reported a first quarter 2014 revenue of $5,5-billion, an increase of 2% compared with the same quarter last year.
First-quarter GAAP net income attributable to EMC was $392-million and first-quarter GAAP earnings per weighted average diluted share was $0,19. First-quarter non-GAAP net income attributable to EMC was $728-million and first-quarter non-GAAP2 earnings per weighted average diluted share was $0,35.
During the first quarter, EMC exceeded its first-quarter revenue outlook by more than $80-million; met outlook for GAAP earnings per weighted average diluted share and exceeded outlook for non-GAAP earnings per weighted average diluted share by $0,01; generated $1,3-billion in operating cash flow and $946-million in free cash flow; and ended the first quarter with $15,3-billion in cash and investments.
In addition, EMC’s Board of Directors approved a 15% increase in the quarterly cash dividend paid to EMC shareholders. The first increased dividend of $0,115 per share of common stock will be paid on July 23, 2014 to shareholders of record as of the close of business on July 1, 2014.
Joe Tucci, EMC chairman and CEO, says, “In a time of shifting market dynamics, EMC continued to generate revenue growth through our EMC Federation strategy across EMC Information Infrastructure, VMware and Pivotal.
Customers are embracing these foundational and transformative technologies as core to their ability not only to maximize their existing infrastructures for many years to come, but to redefine their businesses as they seek new ways to generate growth and customer value. EMC is extremely well equipped to help our customers flourish in this next wave of computing, or what many call the Third Platform of IT.”
David Goulden, CEO of EMC Information Infrastructure and EMC’s CFO, says, “EMC is at the threshold of expansive opportunity. While planned business practice changes had a negative impact on year-over-year revenue and EPS growth in the quarter, we are very confident we are on the right track with our Federation model and technologies.
“With our strong foothold in Second Platform environments and some of the most exciting IT assets in the industry helping us propel customers to the Third Platform of IT, EMC is well positioned to meet our stated 2014 targets.”
For the first quarter, revenue from the EMC Information Infrastructure business declined 3%. Within this, EMC’s Information Storage business declined 3% and, excluding EMC’s High-end Storage business, increased 6% year-over-year.
EMC’s Emerging Storage business revenue growth accelerated to 81% year-over-year, propelled by a number of products including EMC XtremIO all-flash storage, EMC ViPR software-defined storage, EMC Atmos distributed object storage and EMC Isilon scale-out storage.
EMC continued its industry leadership in enterprise flash storage, selling more than 17 petabytes of flash capacity in the first quarter of 2014 alone, an increase of more than 70% year-over-year. Growth of EMC VSPEX reference architectures continued at a rapid pace in the quarter, with year-over-year demand more than doubling. Within the Information Intelligence Group, EMC Syncplicity revenue grew well over 100% year-over-year.
EMC’s Service Provider partner program completed its eighth consecutive quarter as the company’s fastest-growing vertical segment. Revenue from EMC’s RSA Information Security business increased 5% in the first quarter, with Security Analytics and Archer each growing over 25%.
VCE had another strong quarter as demand for Vblocks once again grew at well over 50% year-over-year in the first quarter, with over half of the Vblock unit sales in the quarter going to new customers.
In the first quarter, VMware continued to gain traction as revenues increased 16% year-over-year. VMware continues to help customers build out their software-defined data centres, improve the end-user computing experience, and add seamless connections to external clouds with vCHS. VMware’s hybrid cloud business, which includes the VSPP program and vCHS, more than doubled year-over-year in the first quarter.
VMware also completed its acquisition of AirWatch in the quarter.
After its successful first full year of operations, Pivotal has laid a solid foundation for growth with revenue increasing 41% over the year-ago quarter. Pivotal is winning many flagship enterprise customers – including a marquee customer in almost every major industry sector – who want to build modern cloud-agnostic applications and reason over massive volumes of data.
In the first quarter of 2014, Pivotal increased its focus on software and strategic services with the transfer of Data Computing Appliance and implementation services into EMC Information Infrastructure.
EMC’s consolidated first-quarter revenue from the United States remained flat year-over-year at $2,8-billion, representing 52% of consolidated first-quarter revenue. Revenue from EMC’s business operations outside of the United States increased 3% year-over-year to $2,6-billion and represented 48% of consolidated first-quarter revenue. Within this, on a year-over-year basis, revenue from EMC’s Europe, Middle East and Africa region grew 8%.
