Story image

EMC reports strong financials ahead of Dell merger

19 Jul 16

EMC has reported its second quarter 2016 financial results, with consolidated revenue of $6 billion and a free cash flow of $1.34 billion, a 108% year-over-year rise. The company's operating cash flow totals $1.34 billion, a 56% increase.

“We executed well in the second quarter, and are pleased with our free cash flow performance, which was up 108% year over year. GAAP and non-GAAP revenue in the second quarter was flat and down 1% year over year, respectively.  We once again experienced a higher-than-expected build in unshipped storage product orders due to the timing of bookings within the quarter. Adjusting for an approximately $130 million increase in unshipped orders compared to the year ago quarter, EMC’s consolidated non-GAAP revenue in the second quarter grew 1% year over year," says Denis Cashman, EMC CFO.

The company now holds $16.1 billion in cash and investments, placing the company in a strong position for the upcoming merger with Dell.

“We had a strong second quarter and are well positioned as we look forward to combining with Dell to establish the world’s largest privately-controlled, integrated technology company. We expect the transaction to happen under the original terms and within the originally announced timeframe, following the result of tomorrow’s Special Meeting of Shareholders, regulatory approval from China and completion of customary closing conditions," says Joe Tucci, EMC Chairman and CEO.

According to David Goulden, EMC Information Infrastructure CEO, the growth has stemmed from products such as Virtustream cloud solutions and other flash portfolio products that have enhanced business IT transformation initiatives.

"Turning toward our coming together with Dell, I’m incredibly excited about the impact we will make for customers as we continue to invest and innovate in support of their most strategic IT-led initiatives," Goulden says.

The company says demand for EMC's Converged Infrastructure portfolio grew 40% year-over-year, while demand for the Enterprise Hybrid Cloud Solution grew 178% year-over-year in the first half of 2016.

In addition, EMC times its results reporting with VMWare's revenue results. VMWare's second-quarter revenue reached $1.68 billion, reflecting a year-over year 11% increase in GAAP and a 6% non-GAAP increase.

HPE promotes 'circular economy' for end-of-use tech
HPE is planning to show businesses worldwide that throwing old tech and assets into landfill is not the best option when it comes to end-of-use disposal.
InternetNZ welcomes Govt's 99.8% broadband coverage plan
The additional coverage will roll out over the next four years as part of the Rural Broadband Initiative phase two/Mobile Black Spots Fund (RBI2/MBSF) programme expansion.
Dr Ryan Ko steps down as head of Cybersecurity Researchers of Waikato
Dr Ko is off to Australia to become the University of Queensland’s UQ Cyber Security chair and director.
Radware joins Chillisoft’s expanding portfolio
The cloud DDoS prevention, app delivery controller, and web app firewall expert is another step toward a total enterprise security portfolio.
Commerce Commission report shows fibre is hot on the heels of copper
The report shows that as of 30 September 2018 there were 668,850 households and businesses connected to fibre, an increase of 45% from 2017.
Wearables market flourishing - fuelled by smartwatches
A market that has stuttered in the past now has a bright forecast as adoption of wearable technology continues to thrive.
The tech that helped the first woman to sail around Australia
Lisa Blair used devices from supplied by Pivotel to aid her in becoming the first woman to circumnavigate Australia non-stop.
Why there will be a battle for the cloud in 2019
Cloud providers such as AWS, Azure, and Google will likely find themselves in a mad scramble to gain additional enterprise customers.