EMC Q1 Results Fall Shy Of Expectations

EMC Corporation EMC revealed net income of $268 million or $0.14 per share for the first quarter representing 8 percent year-over-year growth. On an adjusted basis, its net income would have been $603 million or $0.31 a share thus falling shy by $0.02 a share of analysts' expectations of $0.33 a share.

Similarly, EMC reported consolidated revenue of $5.5 billion representing 2 percent year-over-year drop. This was also lower than the Street expectations of $5.63 billion. The company generated about $932 million as operating cash flow and $588 million as free cash flow in the first quarter. At the end of the first quarter, its cash and investments were $15 billion.

Chairman and CEO Joe Tucci commented, "We had a solid first quarter, generally in-line with our expectations when adjusted for an excess of unfulfilled orders at the end of the quarter. The broad secular IT trends reshaping our industry continue playing out as we expected. Our investments in growth platforms are increasingly gaining momentum, and we are confident in the depth and breadth of our product portfolio."

EMC's CEO added, "We continue to make progress on our combination with Dell. Integration planning has accelerated to ensure we begin at full speed upon closing, the leadership team has been established, and we've received the vast majority of anti-trust approvals required. We expect the transaction to happen on the original terms and within the originally announced timeframe."

CFO Denis Cashman said, "While overall we executed well in the first quarter, we did experience a higher than expected build in unshipped storage product orders of approximately $75 million due to the timing of bookings within the quarter. We are pleased that EMC Information Infrastructure operating expenses were down 8 percent as our $850 million cost reduction and business transformation plans announced last year are on track."