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$EMC's 4Q15 revenue from North America and Asia Pacific & Japan regions were flat YoverY. Conversely, revenue from Europe, Middle East and Africa fell 1% and rose 7% on a constant currency basis. Latin America revenue fell 16% and fell 5% on a constant currency basis when compared to the same quarter a year ago.
$EMC's acquisition by Dell Technologies has been completed, and $EMC shareholders received $24.05 per share in cash in addition to tracking stock linked to a part of $EMC's economic interest in VMware. Based on $EMC shares outstanding at close, $EMC shareholders received 0.11146 shares of new tracking stock, $DVMT, for each $EMC share.
CEO Joe Tucci said $EMC is well positioned as it looks forward to combining with Dell to establish the world's largest privately-controlled, integrated technology company. $EMC expects the transaction to happen under the original terms and within the originally announced timeframe, after special meeting results and regulatory approvals.
Data-storage equipment maker $EMC reported a rise in 2Q16 earnings driven by higher-than-expected build in unshipped storage product orders on bookings timing. Net income rose to $581MM or $0.29 per share from $487MM or $0.25 per share last year. Revenue grew to $6.02Bil from $6Bil. Non-GAAP EPS increased to $0.45 from $0.43.
During 1Q16, $EMC's net cash provided by investing activities rose by $1,267MM to $156MM compared to 1Q15 primarily due to a decrease in cash provided by/(used in) the net sales, maturities and purchases of available-for-sale securities. In 1Q15, cash used in investing activities was $1,111MM.
$EMC's effective income tax rate jumped 23.1% during 1Q16 vs. 1Q15 due primarily to higher state taxes. There were also differences in the mix of income attributable to foreign versus domestic jurisdictions, change in tax contingency reserves and discrete items, the net impact of which is immaterial.
During 1Q16, $EMC's other income was $4MM, which primarily consists of net gains and losses on strategic investments and FX gains and losses. During 1Q16, the company said that it recognized net gains from strategic investments of $5MM and foreign currency exchange gains of $11MM.
Provider of IT solutions $EMC's 1Q16 GM remained flat at 59.5%. During the quarter, the Information Storage segment decreased overall GM by 21 BP, the RSA Information Security segment decreased overall GM by 3 points, and the Pivotal segment decreased overall GM by 9 BP.
In 1Q16, $EMC said the demand for Isilon, its scale-out FILE platform plus ECS or software-defined object platform was up more than 20%. The company's VxRack platform was ahead of plan in 1Q16 while in the appliances space, initial response to VxRail has been good. In cloud services, demand for the Virtustream enterprise cloud grew more than 50%.
$EMC said a combination with Dell will create approx. $80Bil in revenues. Progress on integration planning has accelerated. The company has received anti-trust approvals from the US, EU, Canada, Japan, Australia and many countries worldwide. Regulatory approval from China is pending. $EMC expects the transaction to close in the announced timeframe.
IT infrastructure solutions provider $EMC said 1Q16 results were generally in line with expectations when adjusted for an excess of unfulfilled orders in the quarter. Pivotal had a strong quarter with continued customer momentum. VMware continues to execute on its multi-device, multi-cloud strategy.
In 1Q16, $EMC's consolidated revenue from North America was down 3% YoverY. Consolidated revenue in the Europe, Middle East and Africa region was down 1% and in Latin America, revenue was down 14% YoverY. Asia Pacific and Japan revenue was up 2% YoverY and up 4% on a constant currency basis.
Data storage equipment maker $EMC reported net income of $268MM or $0.14 per share in 1Q16, up 8% YoverY compared to $252MM or $0.13 per share in 1Q15. Non-GAAP net income attributable to EMC was $603MM and non-GAAP EPS was $0.31. Consolidated revenue was $5.5Bil, down 2% YoverY versus 1Q15.
During 2015, $EMC initiated a cost reduction and business transformation program. The company expects the $850MM reduction in its annual cost base to be achieved in 2017. As part of this cost reduction plan, in 4Q15 $EMC approved a restructuring plan consisting of a reduction in force to be substantially completed by the end of 1Q16.
$EMC's R&D expense rose 6% in 2015 vs. last year. The rise in R&D expenses was attributable to EMC Information Infrastructure business, which rose overall R&D expenses by $104MM and the VMware Virtual Infrastructure business, which rose overall R&D expenses by $79MM. Additionally, corporate reconciling items rose consolidated R&D expenses by $12MM.
$TDC, which competes with $ORCL, $IBM and $EMC, said it expects GAAP effective tax rate to be approx. 26% in 2016, excluding the tax impact from the pending sale of Marketing Applications business. Non-GAAP effective tax rate is expected to be approx. 27.5% and will not be impacted by the Marketing Applications disposition.