EMC Corporation has reported fourth-quarter and full-year 2014 financial results. Record fourth-quarter consolidated revenue was $7-billion, up 5% year-over-year. GAAP net income attributable to EMC was $1,15-billion, an increase of 12% compared with the year-ago quarter.
GAAP earnings per weighted average diluted share was $0,56 in the fourth quarter, up 17% year-over-year. Non-GAAP net income attributable to EMC was $1,4-billion, an increase of 10% compared with the year-ago quarter. Non-GAAP1 earnings per weighted average diluted share was $0,69, up 15% compared with the year-ago quarter.
Full-year 2014 revenue was $24,4-billion, an increase of 5% year-over-year. GAAP net income attributable to EMC for 2014 was $2,7-billion, down 6% year-over-year, and GAAP earnings per weighted average diluted share was $1,32, down 1% year-over-year. Non-GAAP2 net income attributable to EMC for 2014 was $3,9-billion, an increase of 1% year-over-year, and non-GAAP2 earnings per weighted average diluted share was $1,90, an increase of 6% year-over-year.
For 2014, EMC generated $6,5-billion in operating cash flow and $5-billion in free cash flow3. The company closed 2014 with $14,7-billion in cash and investments. In the fourth quarter EMC repurchased approximately $1,6-billion worth of its common stock and returned approximately $240-million to shareholders via a quarterly dividend.
Over the course of 2014 EMC returned $3,9-billion to shareholders through the repurchase of $3-billion worth of its common stock and approximately $900-million via quarterly dividends.
Joe Tucci, chairman and CEO, says, “EMC demonstrated solid performance in the fourth quarter and over the course of 2014. Our strategy is working well despite a challenging and rapidly changing IT environment. The company stands at the forefront of our industry with a leading portfolio of solutions and services to help customers optimise their existing infrastructures and build new ones that take advantage of opportunities created by cloud, mobile, social and Big Data. We enter 2015 financially strong and well positioned to continue capturing greater market share.”
Zane Rowe, EMC CFO, says, “EMC is establishing a solid foundation for the future, while also delivering near-term growth as we transform our business. Thanks to the unified team effort, in 2014 EMC grew revenue and EPS, gained share, increased our dividend and accelerated our buyback program – returning $3,9-billion to shareholders. Our strong operational results were impacted by currency fluctuations and EMC’s investments in high-growth businesses.
While we expect these factors to continue to impact 2015 results, we remain focused on driving growth for shareholders and delivering best-in-class solutions for customers.”
David Goulden, CEO of EMC Information Infrastructure, says, “In 2014 EMC II invested aggressively in key technology areas, innovated across all businesses, and continued to extend our lead in slower-growing but massive storage markets while making enormous strides in faster-growing areas like all-flash, where we are also the market segment leader.
“We delivered new and differentiated solutions, like the Enterprise Hybrid Cloud solution to help customers bring cloud agility and flexibility to existing applications and a platform for rapid deployment of new applications – a key differentiator for EMC. We also continued our leadership in converged infrastructure, helping customers transform their IT infrastructure by significantly reducing time to deploy and cost to manage new IT infrastructure. Collectively, this will serve us well in 2015 and ensure our continued lead in information infrastructure well into the future.”
EMC Information Infrastructure business fourth-quarter and full-year 2014 revenue were each up 2% year-over-year. Information Storage revenue in the fourth quarter grew 3% year-over-year and 2% for the full year.
Emerging Storage4 revenue in the fourth quarter grew 40% year-over-year and 52% for the full-year 2014, achieving $2,3-billion in revenue over the course of 2014, with notably strong growth for EMC XtremIO, EMC ViPR, EMC Isilon and EMC ScaleIO. Within this, EMC XtremIO bookings more than doubled to nearly $300-million in the fourth quarter compared with the previous quarter, thereby securing a commanding lead over the all-flash array market segment.
Unified and Backup and Recovery revenue grew in the fourth quarter and was up 4% for the full-year 2014. Within this, EMC VNX systems continue to do well, adding approximately 2,000 new customers in the fourth quarter, with the vast majority being new to EMC storage. RSA fourth-quarter revenue grew 4% year-over-year and grew 5% for 2014. Converged infrastructure offerings from VCE and VSPEX continued to drive revenue growth in the fourth quarter, with VCE adding a record number of new customers in the quarter.
VMware continued its rapid growth trajectory with fourth-quarter and full-year 2014 revenue within EMC each up 16% year-over-year as customers continue investing in software-defined data centre, hybrid cloud solutions and end-user computing.
Pivotal grew fourth-quarter revenue 18% and full-year 2014 revenue 27% year-over-year, and remains the fastest growing of EMC’s federated businesses, benefiting from customers leveraging the portfolio to build third platform applications that are transforming their business.
EMC’s consolidated fourth-quarter revenue from North America grew 6% year-over-year, and within this revenue from the United States was up 7% year-over-year. Revenue from EMC’s Europe, Middle East and Africa region grew 6% year-over-year, Asia Pacific and Japan grew 2% year-over-year and Latin America grew 8% year-over-year. Revenue from the BRIC +13 markets grew 7% year-over-year in the fourth quarter.
