EMC Reports 10% Revenue Increase

EMC Corp.'s corporate headquarters in Hopkinton.

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EMC Corp.'s second-quarter earnings came in today, nearly mirroring last week's advance estimate of a 10-percent revenue increase over the same period in 2011.

It marks the 10^th consecutive quarter that the Hopkinton-based data storage company has had double-digit, year-over-year revenue growth, bringing it to $5.31 billion.

Second-quarter profit increased 19 percent to $650 million while earnings per weighted average diluted share (EPS) increased 11 percent year over year to 39 cents.

EMC said that during the second quarter, which ended June 30, it generated operating cash flow of $1.24 billion and free cash flow of $958 million, a year-over-year increase of 16 percent and 36 percent, respectively. The company also expanded its gross margins and operating margin percentages on a year-over-year basis, ending the quarter with $10.9 billion in cash and investments.

Chairman and CEO Joe Tucci said a transformation in the IT industry which has organizations moving to cloud computing has helped propel the company forward "as a leader and driver" of it.

Revenue from EMC's information storage business increased 7 percent over 2011. Within that, revenue from the company's high-end storage product portfolio grew 3 percent while mid-tier went up 10 percent.

EMC's consolidated second-quarter revenue from within the United States increased 14 percent year-over-year to $2.9 billion, representing 54 percent of consolidated second-quarter revenue. Meanwhile, revenue from operations outside of the U.S. increased 5 percent to $2.5 billion.

The company expects consolidated revenues for the full year to hit $22 billion with $1.70 EPS and said it will buy back $700 million of its shares.

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