EMC beats by $0.01, reports revs in-line; guides FY14 below consensus
Reports Q4 (Dec) non-GAAP earnings of $0.60 per share, $0.01 better than the Capital IQ Consensus of $0.59; revenues rose 10.8% year/year to $6.68 bln vs the $6.63 bln consensus.
For Q4, EMC's Information Storage business accelerated revenue growth to 10% YoY. EMC's Emerging Storage business accelerated revenue to 73% YoY, propelled by the very successful launch of EMC XtremIO and continued strong growth of EMC Isilon, EMC Atmos and EMC VPLEX products. The company's Unified and Backup Recovery business5 increased revenue 11% YoY, benefitting from the recent product launches of the next-generation EMC VNX and EMC Data Domain product lines. Revenue from EMC's High-end Storage business6 returned to growth in the fourth quarter as customers continued to turn to the company's popular VMAX family. Revenue growth from EMC's RSA Information Security business and EMC's Information Intelligence business accelerated to 17% and 3% YoY, respectively.
EMC's consolidated fourth-quarter revenue from the United States increased 11%YoY to $3.5 billion, representing 52% of consolidated fourth-quarter revenue. Revenue from EMC's business operations outside of the United States increased 11% YoY to $3.2 billion and represented 48% of consolidated fourth-quarter revenue. Within this, on a year-over-year basis, revenue from EMC's Europe, Middle East and Africa region grew 15%, revenue from EMC's Asia Pacific and Japan region increased 1%, and revenue from EMC's Latin America region grew 12%. Revenue from EMC's BRIC+13 markets increased 17% YoY. The co ended the year with $17.6 billion in cash and investments.
Co issues downside guidance for FY14, sees non-GAAP EPS of $1.95 vs. $2.04 Capital IQ Consensus Estimate; sees FY14 revs of $24.5 bln vs. $24.98 bln Capital IQ Consensus.