EMC Corporation (NYSE:EMC) Q4 2014 Earnings Conference Call - Final Transcript

Jan 29, 2015 • 08:30 am ET

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EMC Corporation (NYSE:EMC) Q4 2014 Earnings Conference Call - Final Transcript

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Operator
operator

Welcome. Good morning and welcome to the EMC Fourth Quarter Earnings Conference Call. All parties are in a listen-only mode until the question answer portion of the call. As a reminder, this conference is being recorded and if you have any objections you may disconnect at this time.

I would now like to introduce your host, Mr. Tony Takazawa, Vice President of Global Investor Relations of EMC. Sir, you may proceed.

Executive
Tony Takazawa

Thank you. Good morning. Welcome to EMC's call to discuss our financial results for the fourth quarter of 2014. Today we are joined by EMC's Chairman and CEO, Joe Tucci, David Goulden, EMC's Information Infrastructure CEO and Zane Rowe, EMC's CFO.Joe will begin our discussion with his view of what is happening in IT and EMC's vision and strategy. Zane will then discuss the consolidated EMC results, some details regarding our performance and also provide our expectations for 2015.

David will comment on the EMC Information Infrastructure business, what he has seen in the market, and the Q4 performance. After the prepared remarks, we will then open up the lines to take your questions. We are providing you with our projected financial model for 2015. This model lays out all of the key assumptions and discreet financial expectations that are the foundation of our outlook this year. We hope that you find this model helpful in understanding our assumptions in context and in ensuring that these expectations are correctly incorporated into your models.

This model is available as background in today's slides available for download in the Investor Relations section of emc.com. Please note that we will be referring to non-GAAP numbers in today's presentation, unless otherwise indicated. The reconciliation of our non-GAAP comments to our GAAP results can be found in the disclosure today in our press release, supplemental schedules, and the slides that accompany our presentation.

With that, it is now my pleasure to introduce Joe Tucci. Joe?

Executive
Joe Tucci

Thanks, Tony. I would like to extend the warm welcome to everyone joining us for today's call. As always, thank you for your interest in EMC. Overall, we are pleased with our execution and results in Q4.Year-over-year, our revenue grew 5% and our non-GAAP EPS grew 15%.

Within these results, revenue grew 16% at VMware, 2% at EMC II, and 18% at Pivotal. But since Pivotal has essentially moved to a subscription model, booking is a better metric

Executive
Tony Takazawa

of future success and in Q4 I am pleased to report that Pivotal's bookings grew over 75%.Our Q4 results fairly exhibit a good balance of growth and opportunity across our family of companies and undoubtedly will compare quite favorably the results posted by large cap enterprise IT peers. As our strategies, products, services, solution, and execution sets us apart in the minds of our customers.Additionally, we continue to invest heavily in the quarter to where the IT pup is going. Investments that we firmly believe will pay off down the road.

Looking at the year 2014, we came in within the 0.5