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January 25, 2011, 7:27 AM EST
By Dina Bass
Jan. 25 (Bloomberg) -- EMC Corp., the world’s biggest maker of storage computers, reported a 61 percent increase in fourth- quarter profit after companies upgraded their data centers.
Net income rose to $628.6 million, or 29 cents a share, from $390.6 million, or 19 cents a share, a year earlier, EMC said today in a statement. Excluding some costs, profit was 42 cents, beating the 41-cent average of analyst estimates compiled by Bloomberg. Sales rose 19 percent to $4.89 billion, exceeding the $4.79 billion average estimate.
EMC is benefiting as companies buy new storage computers to hold increasing amounts of corporate data and manage disaster recovery, according to Daniel Ives, an analyst at FBR Capital Markets. New products are helping EMC sell more to the largest corporations, while demand remains stable among mid-sized companies, he said in a note to clients this month.
The company, based in Hopkinton, Massachusetts, said full- year sales will be $19.6 billion and profit, excluding some items, will be $1.46. Analysts on average estimate full-year profit of $1.45 a share and sales of $19 billion.
EMC fell 15 cents to $23.83 yesterday in New York Stock Exchange composite trading. The shares climbed 31 percent last year.
EMC has a majority stake in VMware, the biggest maker of so-called virtualization programs, which let computers run multiple operating systems. VMware yesterday reported fourth- quarter profit more than doubled to $119.9 million on rising demand for its software.
(EMC is hosting a conference call at 8:30 a.m. New York time. To listen, go to LIVE .)
--Editors: Ville Heiskanen, Peter Elstrom
To contact the reporters on this story: Dina Bass in Seattle at dbass2@bloomberg.net
To contact the editors responsible for this story: Tom Giles at tgiles5@bloomberg.net
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Jan. 25 (Bloomberg) -- EMC Corp., the world’s biggest maker of storage computers, reported a 61 percent increase in fourth- quarter profit after companies upgraded their data centers.
Net income rose to $628.6 million, or 29 cents a share, from $390.6 million, or 19 cents a share, a year earlier, EMC said today in a statement. Excluding some costs, profit was 42 cents, beating the 41-cent average of analyst estimates compiled by Bloomberg. Sales rose 19 percent to $4.89 billion, exceeding the $4.79 billion average estimate.
EMC is benefiting as companies buy new storage computers to hold increasing amounts of corporate data and manage disaster recovery, according to Daniel Ives, an analyst at FBR Capital Markets. New products are helping EMC sell more to the largest corporations, while demand remains stable among mid-sized companies, he said in a note to clients this month.
The company, based in Hopkinton, Massachusetts, said full- year sales will be $19.6 billion and profit, excluding some items, will be $1.46. Analysts on average estimate full-year profit of $1.45 a share and sales of $19 billion.
EMC fell 15 cents to $23.83 yesterday in New York Stock Exchange composite trading. The shares climbed 31 percent last year.
EMC has a majority stake in VMware, the biggest maker of so-called virtualization programs, which let computers run multiple operating systems. VMware yesterday reported fourth- quarter profit more than doubled to $119.9 million on rising demand for its software.
(EMC is hosting a conference call at 8:30 a.m. New York time. To listen, go to LIVE .)
--Editors: Ville Heiskanen, Peter Elstrom
To contact the reporters on this story: Dina Bass in Seattle at dbass2@bloomberg.net
To contact the editors responsible for this story: Tom Giles at tgiles5@bloomberg.net
Business | Christians | Coupons | Discussions | Gamers
Legal | Politics | Sports | Teens | Webmasters