EMC posts strong Q4 earnings while shares fall
EMC reported an increase in revenue and net income for its fiscal 2007 fourth quarter but also saw a downturn in its share price.
EMC said its fourth-quarter GAAP net income rose to $525.7 million, a 35.2 percent increase from $388.8 million in the year-ago quarter.
During the quarter, the Hopkinton, Mass.-based company generated an operating cash flow of $979 million, an increase of 50 percent compared with the same period last year, and cash flow of $712 million.
EMC said its earnings were helped by strong revenue growth at each of its divisions including the Information Storage business, where revenue increased to $3.03 billion; Content Management and Archiving reached $238 million; and Information Security revenues grew to $148 million.
Despite the stronger-than-expected quarterly earnings, shares of EMC fell $1.11, or 6.6 percent, to $15.80, which financial analysts attribute to disappointing results reported Tuesday from VMware, a storage software maker. EMC holds an 86 percent stake in the company, which reported fourth-quarter revenue of $412.5 million that it said fell short of an anticipated $417.4 million.
EMC said its fourth-quarter GAAP net income rose to $525.7 million, a 35.2 percent increase from $388.8 million in the year-ago quarter.
During the quarter, the Hopkinton, Mass.-based company generated an operating cash flow of $979 million, an increase of 50 percent compared with the same period last year, and cash flow of $712 million.
EMC said its earnings were helped by strong revenue growth at each of its divisions including the Information Storage business, where revenue increased to $3.03 billion; Content Management and Archiving reached $238 million; and Information Security revenues grew to $148 million.
Despite the stronger-than-expected quarterly earnings, shares of EMC fell $1.11, or 6.6 percent, to $15.80, which financial analysts attribute to disappointing results reported Tuesday from VMware, a storage software maker. EMC holds an 86 percent stake in the company, which reported fourth-quarter revenue of $412.5 million that it said fell short of an anticipated $417.4 million.