EMC Corporation (NYSE:EMC) today reported strong financial results for the first quarter of 2012, marking the company's ninth consecutive quarter of achieving year-over-year double-digit growth for consolidated revenue, net income and EPS.
First-quarter consolidated revenue was $5.1 billion, an increase of 11% compared with the year-ago quarter. First-quarter GAAP net income attributable to EMC increased 23% year over year to $587 million. First-quarter GAAP earnings per weighted average diluted share increased 29% year over year to $0.27. Non-GAAP1 net income attributable to EMC for the first quarter was $818 million, an increase of 17% compared with the year-ago quarter. First-quarter non-GAAP1 earnings per weighted average diluted share were $0.37, an increase of 19% year over year.
During the first quarter, EMC generated operating cash flow of $1.7 billion and free cash flow2 of $1.4 billion, increases of 49% and 67% year over year, respectively. Additionally, the company significantly expanded GAAP and non-GAAP gross margin and operating margin percentages on a year-over-year basis, and ended the quarter with $10.9 billion in cash and investments.
1Items excluded from the non-GAAP results for the first quarters of 2012 and 2011 are amounts relating to stock-based compensation expense, intangible asset amortization, restructuring and acquisition-related charges and amortization of VMware’s capitalized software from prior periods. See attached schedules for GAAP to non-GAAP reconciliations.
2Free cash flow is a non-GAAP financial measure which is defined as net cash provided by operating activities, less additions to property, plant and equipment and capitalized software development costs. See attached schedules for a reconciliation of net cash provided by operating activities to free cash flow for the three months ended March 31, 2012 and 2011.
First-Quarter Highlights:
- Consolidated revenue up 11% year over year
- GAAP net income up 23% year over year; GAAP EPS up 29%
- Non-GAAP net income up 17% year over year; Non-GAAP EPS up 19%
- Strong year-over-year percentage increases in gross and operating margins
- Strong year-over-year increases in operating cash flow and free cash flow
