EMC is experiencing storming business results with 20 per cent revenue growth and a 58 per cent rise in profits in its third 2010 quarter. Total revenues came in at $4.21bn, while net income was $472.5m. On a non-GAAP basis, net income was $649.4m, up 35 per cent on the year. There was 23 per cent year-on-year growth in …
Year on year growth cpmparing to the dip?
Whilst the figures all look very impressive, if they are comparisons with the economic low of last year then they really need to be compared to the pre-dip figures of 2007 or 2008 to see how they compare to a more stable year. After all, it could be that EMC just did really badly in the dip which is making this year's figures look so good.
The "VMAX Effect"
Cute phrase, Chris - almost sounds like a compliment :-)
From the 2009 Q3 Earnings press release:
"Third-quarter (2009) consolidated revenue of $3.52 billion declined 5% compared with the year-ago period. " (2009Q3 press release is here: http://www.emc.com/about/news/press/2009/20091022-earnings.htm )
Retrospectively, EMC wasn't doing so badly during the dip. And with management predicting the highest revenues in the company's history (~$16.9B), this year's numbers are clearly more than a simple recovery from that dip.
(Disclosure: I work for EMC, in the Symmetrix organization...one of the minions behind The VMAX Effect).