EMC Corporation today reported first-quarter 2016 financial results. First-quarter consolidated revenue was $5.5 billion, down 2% year over year. GAAP net income attributable to EMC was $268 million in the first quarter, and GAAP earnings per weighted average diluted share was $0.14 in the first quarter, up 8% year over year. Non-GAAP1 net income attributable to EMC was $603 million in the first quarter, and non-GAAP1 earnings per weighted average diluted share in the first quarter was $0.31, flat year over year.
EMC generated $932 million in operating cash flow and $588 million in free cash flow3 in the first quarter, and ended the quarter with $15 billion in cash and investments. EMC returned $227 million to shareholders via a quarterly dividend.
- EMC Information Infrastructure business first-quarter revenue was down 6% year over year (down 4% on a constant currency basis2). In the first quarter EMC significantly expanded its all- flash storage portfolio with the introduction of VMAX All Flash and the DSSD Rack-Scale Flash solution. EMC also introduced a new Hyper-Converged VCE VxRail Appliance family in the first quarter, complemented by reseller agreements with Dell.
- VMware first-quarter revenue within EMC was up 5% year over year (up 6% on a constant currency basis2).
- Pivotal first-quarter revenue was up 56% year over year. Pivotal continues to have success with its cloud and big data subscription software, with annual recurring revenue4 up over 200% year over year.
1 Items excluded from the non-GAAP results for the first quarters of 2016 and 2015 are amounts relating to stock-based compensation expense, intangible asset amortization, restructuring charges, acquisition and other related charges, VMware litigation and other contingencies, merger-related costs and Venezuela currency devaluation. A benefit of the U.S. research and development (“R&D”) tax credit for the first quarter of 2015 was included in the non-GAAP results for the first quarter of 2015 as if the credit had been enacted. See attached schedules for GAAP to non-GAAP reconciliations.
3 Free 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, 2016 and 2015.
EMC, VMAX, DSSD and VCE are either registered trademarks or trademarks of EMC Corporation in the United States and/or other countries. All other trademarks used are the property of their respective owners.