Infrastructure 2.0 Journal

EMC Session at Cloud Expo

Cloud Computing Expo - EMC Corporation on Tuesday reported financial results for the fourth quarter of 2009. Ongoing strategic investments aligned to key customer priorities helped EMC achieve record fourth-quarter revenue. A continued focus on efficiencies and expense controls helped deliver expanded gross and operating margins, record quarterly free cash flow and fourth-quarter profit that exceeded prior company outlook.

Consolidated revenue for the fourth quarter of 2009 reached a record $4.1 billion, an increase of 17% sequentially, 2% year over year and $100 million more than the outlook provided by EMC for the fourth quarter of 2009.

Fourth-quarter GAAP net income attributable to EMC reached $426.5 million, an increase of 43% sequentially and 58% year over year.

Fourth-quarter GAAP diluted earnings per share were $0.20, up 43% sequentially and 54% compared with the year-ago quarter. Non-GAAP(1) net income attributable to EMC for the fourth quarter was $695.5 million, an increase of 45% sequentially and 11% compared with the fourth quarter of 2008. Non-GAAP(1) earnings per diluted share were $0.33 for the fourth quarter, $0.03 ahead of the company outlook provided for the fourth quarter of 2009. Fourth-quarter non-GAAP(1)( )earnings per diluted share increased 43% sequentially and were up 6% year over year.(2)

During the fourth quarter, EMC expanded gross and operating margins on a sequential basis, generated operating cash flow of $1.0 billion and achieved record quarterly free cash flow of $793 million. EMC completed the fourth quarter with $9.4 billion in cash and investments.

For the full year 2009, EMC achieved total consolidated revenue of $14.0 billion. GAAP net income attributable to EMC for 2009 was $1.1 billion or $0.55 per diluted share. Non-GAAP(3) net income attributable to EMC for the full year was $1.9 billion or $0.90 per diluted share. For comparison, GAAP net income attributable to EMC for 2008 was $1.3 billion or $0.61 per diluted share and non-GAAP(3) net income attributable to EMC for 2008(2) was $2.1 billion or $1.00 per diluted share. For 2009, EMC's operating cash flow was $3.3 billion and free cash flow was $2.6 billion, an increase of 2% year over year.

Joe Tucci, EMC Chairman and Chief Executive Officer, said, "Aggressive investment in core technology and strategic partnerships during the downturn, combined with heightened operational discipline, leaves EMC stronger than ever financially and intensely focused on our customers. We are well positioned to lead the industry's newest and potentially largest wave of IT, which we and others refer to as cloud computing. As we execute on our vision for where the industry is heading, EMC's primary focus is on helping customers safely build out their next-generation, fully virtualized data centers and lead them along the journey to private cloud computing, which offers the promise of a dramatically more efficient and effective model for delivering IT as a service."

David Goulden, EMC Executive Vice President and Chief Financial Officer, said, "Emerging from the worst global recession in company history, EMC is in the best financial and operational shape ever. We refined our financial model to a new level of efficiency and cost discipline, while continuing to invest in strategic technologies and high-growth markets. We rolled out new and more-advanced solutions and services with the best quality in our history and gained market share. With this positive momentum, EMC stands well positioned to continue to gain share in key markets and drive even greater profitability in 2010."