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EMC has announced a solid financial performance for FY12. Revenue increased 9% over FY11 to reach $21.7b. Operating margin was 24.9%, 100 basis points higher than in 2011. For the fourth quarter, revenue increased 8% to $6.0b, while operating margin improved 120 basis points to 27.5%.
Across the geographies, APJ led the way with revenues up 19% in Q4. EMEA faired well with revenues up 11%, outperforming both North America (+5%) and Latin America (-2%).
EMC continues to benefit from its position at the intersection of key technology trends, namely cloud, big data and trust (i.e. security). However, the response from investors was dampened in light of the weaker-than-expected guidance from subsidiary, VMware (see VMware shares fall on 2013 outlook) and shares dipped around 4%.
For FY13, EMC’s management team expects revenues to grow 8% to $23.5b. CEO, Joseph Tucci, explained that he has detected “cautious optimism” amongst customers who have realised “you can’t starve [IT] for too long”. This reflects our view that some buyers have cut all they can cut and now accept they must ‘change tack’ and find alternative ways to buy and manage IT (see Infrastructure Services Predictions 2013).
