EMC reports strong Q2 thanks to new products, services

Data storage vendor EMC reported strong second-quarter results Wednesday, citing growth across all segments of its business thanks to new products and services, and an expanded distribution network.

The Hopkinton, Massachusetts, company reported revenue of US$1.48 billion for the quarter ended June 30, representing a 7 percent growth rate over the $1.39 billion it reported for the year-ago quarter.

Net income came in at $82 million, or $0.04 per diluted share, topping consensus analyst estimates collected by Thomson First Call by a penny.

"Our newly introduced products, broadened distribution channels, storage service offerings, and much leaner cost structure have all contributed to a significant improvement in our profitability over the last 12 months," EMC Executive Vice President and Chief Financial Officer Bill Teuber said in a statement.

The company said that it saw strong revenue gains from its Symmetrix DMX, Clariion CX and Centera storage systems.

During the quarter, it also benefited from the introduction of new products such as an updated version of its PowerPath software and the EMC Centura Compliance Edition designed for record retention, the company said.

Looking ahead, EMC expects third-quarter revenue to come in between $1.45 billion and $1.5 billion, with earnings of $0.04 per diluted share. It also expects its acquisition of storage management software provider Legato Systems Inc. to be "slightly accretive" to its 2004 diluted earning per share.

However, earlier this week Legato shareholders filed suit to block EMC's proposed $1.3 billion buy of the company, saying that it represented a breach of fiduciary duty. EMC announced that it was making a bid for Legato July 8 in an effort to fill in the gaps in its storage software line.

Shares of EMC (EMC) closed at $11.07 a share on the New York Stock Exchange Tuesday.

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