EMC's financial release bodes well for storage sector demand

EMC reported record financial results for the company's third fiscal quarter of 2010. Strong execution and continued healthy customer demand for the company's storage, data protection, virtualization, and security products and services contributed to EMC achieving all-time record consolidated revenue and record third-quarter non-GAAP net income. For the third quarter, consolidated revenue was $4.21 billion, an increase of 20% compared with the year-ago quarter; GAAP net income attributable to EMC increased 58% year over year to $472.5 million; and GAAP diluted earnings per share were $0.22, up 57% year over year. Non-GAAP1 net income attributable to EMC for the third quarter was $649.4 million, an increase of 35% compared with the year-ago quarter, and non-GAAP1 earnings per diluted share were $0.30, an increase of 30% year over year.

During the quarter, EMC expanded gross and operating margins substantially on a year-over-year basis. The company achieved all-time record year-to-date operating cash flow and free cash flow of $3.0 billion and $2.2 billion, which grew 31% and 22%, respectively, compared with the year-ago period. The company completed the quarter with $10.5 billion in cash and investments. Joe Tucci, EMC's Chairman and Chief Executive Officer, said, "Customers are embracing EMC in increasing numbers as a trusted partner for their cloud computing build-outs. To lead this transformational IT wave, EMC remains focused on — and is taking share in — markets that are growing considerably faster than IT as a whole. With our compelling technology and services portfolio, partner ecosystem, and strong product roadmap, we remain confident that we'll continue to produce double-digit growth rates over the long term."

In spite of a down day for the Dow and S&P indices EMC shares are trending higher in after hours trading: http://data.cnbc.com/quotes/emc