EMC Corporation (NYSE:EMC) today reported third-quarter 2015 financial results. Consolidated third-quarter revenue was $6.08 billion, up 1% year over year and up 5% year over year on a constant currency basis1. GAAP and non-GAAP2 earnings per weighted average diluted share were $0.25 and $0.43, respectively.
EMC generated $1.4 billion in operating cash flow and $1.03 billion in free cash flow3 in the third quarter, and ended the quarter with $14.3 billion in cash and investments. EMC returned $229 million to shareholders in the third quarter via a quarterly dividend.
Third-Quarter 2015 Summary:
- Revenue up 1% year over year and up 5% year over year on a constant currency basis
- GAAP and non-GAAP EPS of $0.25 and $0.43, respectively
- EMC Emerging Storage, Pivotal and VMware revenues up 27%, 16% and 10% year over year, respectively; up 32%, 18% and 14% year over year on a constant currency basis, respectively
1 This release refers to growth rates at constant currency or adjusting for currency so that business results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of EMC's business performance. To present this information, current period results for entities reporting in currencies other than US dollars are converted into US dollars at the exchange rate applied in each month of the prior year quarter. Constant currency includes the impacts from EMC's hedging program.
2 Items excluded from the non-GAAP results for the third 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 third quarters of 2015 and 2014 is included in the non-GAAP results for the third quarters of 2015 and 2014 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 and nine months ended September 30, 2015 and 2014.