Cloud computing powers EMC earnings
Cloud computing and storage products maker sees earnings rise 28 percent. EMC calls cloud computing 'most transformative' trend in IT history.
EMC Corp., the world's largest maker of data storage computers, said Tuesday that its third-quarter net income grew 28 percent, thanks to strong worldwide demand for its cloud computing and data storage products and services.Skip to next paragraph
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The company reported net income of $605.6 million, or 27 cents per share, up from $472.5 million, or 22 cents per share, in the same period last year.
Adjusted earnings were 37 cents per share. This figure excludes stock compensation expenses, restructuring and acquisition-related charges and other items.
Revenue rose 18 percent to $4.98 billion from $4.21 billion.
Analysts, on average, were expecting adjusted earnings of 36 cents per share on revenue of $4.92 billion, according to a poll by FactSet.
Chairman and CEO Joe Tucci said he is pleased with EMC's solid quarterly performance.
"Global customer demand for our industry-leading products and services, which led to record quarterly financial results, is clear evidence that EMC is at the center of the most transformative, disruptive and opportunity-rich trends in (information technology) history — namely hybrid cloud computing and the explosion of Big Data," Chairman and CEO Joe Tucci said in a statement.
Companies and customers are increasingly shifting to "cloud computing," in which software and data are stored on remote servers rather than in-house computers. "Big data," meanwhile, refers to the vast troves of digital information available from a broad range of sources from social networks to city traffic patterns and music and movie files.
For 2011, EMC expects earnings of $1.07 per share and adjusted earnings of $1.48 per share, the latter matching Wall Street's expectations. It is forecasting revenue of $19.8 billion for the year. Analysts are expecting $19.84 billion.
EMC's shares rose 72 cents, or 3.2 percent, to $23.40 in premarket trading.