EMC Corp., the world's largest maker of data storage computers, said Wednesday 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 that 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 in the latest quarter, slightly ahead of Wall Street's expectations.
Revenue grew 20 percent to $4.85 billion from $4.02 billion.
Analysts, on average, had expected earnings of 34 cents per share on revenue of $4.75 billion, according to FactSet.
"We remain confident in our ability to continue delivering strong results this year and over the long term," Chairman and CEO Joe Tucci said in a statement.
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.
EMC shares fell 5 cents to $27.33 just after noon after hitting a 52-week high of $28.73 in morning trading.
VMware's shares fell 37 cents to $105.65 after hitting a 52-week high of $110.60.