EMC Corp. (NYSE: EMC) turned in a solid third quarter -- increasing year-over-year revenues 20 percent -- and said its fourth quarter promises to be even better (see EMC Posts Q3 Results).
Continuing its third straight quarter of sales growth, the Hopkinton, Mass., company reported third-quarter revenue of $1.51 billion and net income of $159 million, or $0.07 per share. Included in that profit was about $45 million, or $0.02 per share, "from the favorable resolution of certain tax audits," the company said. Still, even without the tax break, that's a big turnaround from last year, when EMC posted a 9 percent sequential drop in sales (see EMC Stagnates).
"Q3 of 2001 and Q3 of 2002 were real disappointments," said EMC CEO Joe Tucci on a conference call with analysts this morning.
In an unexpected surprise, EMC said revenues from its partnership with Dell Computer Corp. (Nasdaq: DELL) represented slightly more than 10 percent of its total, or more than $150 million. EMC executives said it had an unusually high number of Symmetrix sales through Dell, with Dell's sales figures for Symmetrix and Clariion roughly equal.
Tucci, who noted that EMC sales reps participated in each Symmetrix deal, said there were a few "one-timers," a few unanticipated sales in the government sector, as well as a big Symmetrix sale to Dell as a customer.