EMC Corporation (NYSE:EMC) reported first-quarter 2015 financial results. Consolidated first-quarter revenue was $5.6 billion, up 2% year over year and up 6% on a constant currency basis. GAAP earnings per weighted average diluted share was $0.13, down 32% year over year. Non-GAAP1 earnings per weighted average diluted share was $0.31, down 11% compared with the year-ago quarter.
EMC generated $1.1 billion in operating cash flow and $755 million in free cash flow2 in the first quarter, and ended the quarter with $13.5 billion in cash and investments. The company repurchased approximately $1.5 billion worth of its common stock in the first quarter and returned approximately $230 million to shareholders via a quarterly dividend.
- Q1 results broadly in line with EMC expectations
- Full-year outlook adjusted to $25.7 billion in revenue and non-GAAP EPS of $1.91 to reflect the impact of foreign currency exchange rates as of March 31, 2015
- Revenue up 2% year over year, up 6% on a constant currency basis
- GAAP and non-GAAP EPS down 32% and 11% year over year, respectively
- Six key high-growth areas5 grew combined revenue well over 100% year over year and are on track to achieve $2 billion in combined revenue in 2015
1 Items excluded from the non-GAAP results for the first quarters of 2015 and 2014 are amounts relating to stock-based compensation expense, intangible asset amortization, restructuring charges, acquisition and other related charges and VMware litigation and other contingencies. A benefit of the U.S. research and development (“R&D”) tax credit for the first quarters of 2015 and 2014 is included in the non-GAAP results for the first quarters of 2015 and 2014 as if the credit had been enacted. See attached schedules for GAAP to non-GAAP reconciliations.
2 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, 2015 and 2014 and for the full year 2015 business outlook.
3 EMC's Emerging Storage business primarily includes product and maintenance revenues from EMC Isilon, EMC Atmos, EMC VPLEX, EMC ViPR, EMC ScaleIO, EMC Elastic Cloud Storage Appliance, EMC RecoverPoint, Data Computing Appliance, ASD Suites and EMC vFlash and EMC XtremIO families.
4 Items excluded from the non-GAAP business outlook for 2015 are amounts relating to stock-based compensation expense, intangible asset amortization, restructuring charges and acquisition and other related charges. A benefit for an R&D tax credit is included in the GAAP and non-GAAP business outlook for 2015. See attached schedules for GAAP to non-GAAP reconciliations.
5 EMC's six key high-growth areas include Airwatch, NSX, Pivotal, ViPR/ScaleIO/Elastic Cloud Storage, DSSD and XtremIO.