EMC's quarter better than expected
The storage giant also raises its outlook for the year, saying that IT budgets have stabilized and customers are more confident about their visibility.
This was originally posted at ZDNet's Between the Lines.
EMC reported better-than-predicted results for the second quarter and upped its outlook for the remainder of the year.
The company said that IT budgets have stabilized and customers are more confident about their visibility.
The storage giant on Thursday reported net income of $205.2 million, or 10 cents a share, on revenue of $3.26 billion, down 11 percent from a year ago. On a non-GAAP basis, EMC reported earnings of 18 cents a share.
Wall Street was expecting earnings of 16 cents a share on revenue of $3.2 billion.
EMC also raised its outlook. The company now projects 2009 earnings of 51 cents a share and non-GAAP earnings of 82 cents a share. Wall Street expects 78 cents a share of non-GAAP earnings.
On the revenue front, EMC now projects 2009 sales of $13.8 billion compared with previous estimates of $13.5 billion. Data Domain, whose acquisition closes Thursday, will contribute $200 million in revenue for 2009 and will be neutral to non-GAAP earnings. On a net basis, the Data Domain amounts to a less than 2 cents a share impact.
Meanwhile, third quarter revenue is expected to rise 2 percent to 3 percent sequentially excluding Data Domain results. Data Domain's inclusion results in sequential growth of 4 percent to 5 percent.
In a statement, CEO Joe Tucci said that EMC expects the company to generate double-digit revenue growth rates "when IT markets resume to (a) more normal spending rate." For now, EMC will focus on gaining share in the hottest markets: data centers, cloud computing, virtualization, and storage.