Joe Tucci, EMC Chairman and Chief Executive Officer.
Hopkington – EMC Corporation (NYSE:EMC) today reported record financial results for both the fourth quarter and full year 2012. For the fourth quarter, the company achieved record quarterly consolidated revenue, net income and EPS on a GAAP and non-GAAP basis. Full-year 2012 results were highlighted by record revenue, net income, EPS, operating cash flow and free cash flow. The results were also highlighted by record quarterly and full-year gross margins on a GAAP and non-GAAP basis.
Fourth-quarter revenue was $6.0 billion, an increase of 8% compared with the year-ago quarter. Fourth-quarter GAAP net income attributable to EMC increased 5% year over year to $870 million. Fourth-quarter GAAP earnings per weighted average diluted share increased 3% year over year to $0.39. Non-GAAP1 net income attributable to EMC for the fourth quarter was $1.2 billion, an increase of 12% compared with the year-ago quarter. Fourth-quarter non-GAAP1 earnings per weighted average diluted share were $0.54, an increase of 10% year over year.
Full-year 2012 revenue was $21.7 billion, an increase of 9% year over year. GAAP net income attributable to EMC for 2012 increased 11% year over year to $2.7 billion, and GAAP earnings per weighted average diluted share were $1.23, up 12% year over year. Non-GAAP2 net income attributable to EMC for 2012 was $3.8 billion, an increase of 11% year over year, and non-GAAP2 earnings per weighted average diluted share were $1.70, an increase of 13% year over year. The company’s fourth-quarter and full-year non-GAAP results include the tax benefit related to the U.S. research and development tax credit for 2012.3
For 2012, EMC generated operating cash flow of $6.3 billion and free cash flow4 of $5.0 billion, increases of 10% and 14% year over year, respectively. For the quarter and full-year, EMC expanded GAAP and non-GAAP gross margin and operating margin percentages on a year-over-year basis. The company ended the year with $11.4 billion in cash and investments.
Joe Tucci, EMC Chairman and Chief Executive Officer, said, “EMC achieved its first $6 billion quarter for revenue, capping off a record breaking 2012. Driving our strong results is the strength of our leading-edge products and services, our solid operational and financial model, and consistent execution against our strategy. EMC remains squarely at the center of the most disruptive and opportunity-rich shift in IT history, propelled by the benefits of cloud computing, Big Data and trusted IT. These high-priority IT spending areas are core to our strategic focus and represent market segments where EMC has established leadership positions and competitive advantage.”
David Goulden, EMC President and Chief Operating Officer, said, “With outstanding execution by EMC employees worldwide, we once again delivered our triple play in 2012 – simultaneously taking market share, reinvesting for growth and delivering improved earnings. EMC’s broad, best-of-breed portfolio of products and services, which offer customers greater efficiency, control and choice as they transform both their IT and their businesses, is a key and differentiating element of our continued financial success. We believe EMC is well positioned to expand our leadership in the market segments we serve, deliver on our triple play again in 2013, and leverage our strong balance sheet to invest heavily in leading edge technology for cloud computing, Big Data and trusted IT.”
Fourth-Quarter Highlights
In the fourth quarter, revenue from EMC’s networked storage platforms portfolio5, which includes EMC’s high-end and mid-tier storage platform products, grew 6% year over year. Revenue from EMC’s high-end Symmetrix storage product portfolio increased 6% compared with the year-ago quarter. Revenue from EMC’s mid-tier storage products6 portfolio increased 5% year over year, led by continued strong revenue growth of EMC’s Isilon scale-out NAS products. The company also saw continued strong demand for its Flash-based caching and Flash-based storage solutions.
Additional fourth-quarter highlights included strong year-over-year revenue growth for EMC’s Greenplum product portfolio. VMware (NYSE: VMW), the global leader in virtualization and cloud infrastructure, grew revenue 22% year over year. EMC’s VSPEX reference architecture solutions continued to gain momentum with rapid adoption and increasing popularity among customers and partners who have sold more than 1,300 VSPEX solutions since their launch in April 2012. VCE, the leader in converged cloud infrastructure systems, continued to gain traction and exceed company expectations as demand for Vblock systems showed strong year-over-year growth. Finally, EMC continued to expand its Service Provider Program with fourth-quarter revenue from service provider partners growing more than 70% year over year.
EMC’s consolidated fourth-quarter revenue from the United States increased 5% year over year to $3.1 billion, representing 52% of consolidated fourth-quarter revenue. Revenue from EMC’s business operations outside of the United States increased 12% year over year to $2.9 billion and represented 48% of consolidated fourth-quarter revenue. Within this, revenue from EMC’s Europe, Middle East and Africa region grew 11% year over year, and revenue from EMC’s Asia Pacific and Japan region increased 19% year over year. (EMC/mc)
About EMC
EMC Corporation is a global leader in enabling businesses and service providers to transform their operations and deliver IT as a service. Fundamental to this transformation is cloud computing. Through innovative products and services, EMC accelerates the journey to cloud computing, helping IT departments to store, manage, protect and analyze their most valuable asset — information — in a more agile, trusted and cost-efficient way.
