EMC returns to profit growth, net income up 58 pct
EMC Corp. said Tuesday that its net income jumped 58 percent in the latest quarter, the first time since the spring of 2008 that profit has risen at the information-management company.
Revenue also ticked higher, and 2010 guidance was above Wall Street's projections.
Both are signs that corporations' spending on technology is rebounding from depressed recession levels. The same pattern also was seen in the latest numbers from Intel Corp., which reported strong sales of chips for computer servers, and IBM Corp., whose revenue grew for the first time in a year and half. EMC is the top maker of data-storage machines.
David Goulden, EMC's chief financial officer, said in a statement that EMC is in "the best financial and operational shape ever" coming out of the downturn.
EMC, which is based in Hopkinton, Mass., said before the market opened that it earned $426.5 million, or 20 cents per share, in the last three months of 2009. That compares with $269.9 million, or 13 cents per share, a year earlier.
Excluding one-time items, EMC earned 33 cents per share. That was 3 cents per share higher than the average estimate of analysts polled by Thomson Reuters.
EMC's net income had fallen in each of the previous five quarters as companies tightened their budgets in the financial crisis.
Revenue was $4.1 billion, an increase of 2 percent. Analysts were expecting flat revenue.
For 2010, EMC predicts it will earn $1.12 per share, excluding items, on $16.0 billion in revenue. Analysts were predicting $1.11 in profit, on that basis, and revenue of $15.5 billion.