Cloud computing lifts EMC results
HOPKINTON - EMC Corp., the world’s largest maker of data storage computers, said yesterday that its second-quarter net income grew sharply thanks to strong demand worldwide for its cloud computing and data storage technology.
EMC owns the majority of VMware Inc. whose virtualization software allows one computer to function as multiple machines. VMware posted better-than-expected results on Tuesday, and Citi Investment Research analyst Richard Gardner said VMware’s profitability helped boost EMC’s earnings and revenue.
For the three months ended June 30, EMC earned $546.5 million, or 24 cents per share, up 28 percent from $426.2 million, or 20 cents per share, a year earlier.
Excluding one-time items, such as restructuring and acquisition-related charges, EMC earned 35 cents per share, slightly ahead of Wall Street’s expectations.
Revenue grew 20 percent to $4.85 billion from $4.02 billion. Analysts had expected an average of 34 cents per share on revenue of $4.75 billion.
EMC expects 2011 adjusted earnings of $1.48 on revenue of $19.8 billion.
Analysts are predicting earnings of $1.49 per share on revenue of $19.83 billion for the full year.
VMware’s shares fell 11 cents to $105.91 after hitting a 52-week high of $110.60.