EMC has reported a 20 per cent increase in second quarter net income on a 21 per cent increase in revenue, driven in part by the success of its VMware subsidiary, a portion of which soon will be spun off in an IPO.
EMC reported net income of $US334.4 million, or $US0.16 per share on revenue of $US3.12 billion, for the three months ended June 30, compared to net income of $US279 million, or $US0.12 a share, on revenue of $US2.57 billion in the same quarter of 2006.
Contributors to EMC's results included its VMware subsidiary, a provider of virtualisation software, which reported a revenue increase of 89 per cent to $US298 million. EMC is planning to sell off 10 per cent of VMware in an IPO (initial public offering) of stock this quarter. EMC said on July 9 that VMware stock would be priced between $US23 and $US25 a share when it went on the market.
EMC also reported 12 per cent revenue growth to $US2.5 billion for its main line of business, data storage systems, services and software. It's EMC Clariion line of networked storage systems, reported double-digit growth over the year ago quarter.
Along with VMware, revenue from EMC's RSA Information Security software line grew 21 per cent year-over-year.
EMC is also flush with cash. It reported operating cash flow of $US622 million, up 59 from the year ago quarter, and free cash flow of $US422 million, an increase of 123 per cent.
EMC forecasts net income for share for all of 2007 of $US0.64 a share on revenue of $US12.7 billion.