EMC Corp. posted first-quarter net income that grew 28 percent thanks to healthy demand for data storage and services, with corporations ramping up their tech spending
The world's largest maker of data storage computers earned $477.1 million, or 21 cents per share, up from $372.7 million, or 17 cents per share, in the same period a year earlier. Excluding special items, EMC earned 31 cents per share in the latest quarter.
Revenue rose 18 percent to $4.61 billion from $3.89 billion.
EMC matched profit expectations on Wall Street and did slightly better than most revenue projections, according to a poll by FactSet.
Technology companies are posting strong earnings to start the year. EMC's rising profits come on the heels of healthy quarters from Intel Corp. and IBM Corp.
The company said it is growing more confident that it can meet and potentially exceed its 2011 revenue and adjusted earnings guidance. The company expects earnings of $1.09 per share and adjusted earnings of $1.46 per share for the year. Analysts are looking for a profit of $1.48 per share. The company expects revenue of $19.6 billion, roughly the same as Wall Street's $19.7 billion estimate.
EMC's majority-owned VMware Inc. also posted healthy results this week. The company reported a 60 percent jump in first-quarter earnings Tuesday as demand for its "virtualization" software increased. Virtualization allows one computer or server to function as multiple machines, saving on energy costs.
Shares of EMC climbed 8 cents to $26.80 in premarket trading. VMware's shares jumped $11.53, or 13.4 percent, to $97.50.