EMC Posts Record Q3 Results on Strong Demand

October 19 00:00 2011

New York, October 19 (RainbowNewsLine.com) – EMC Corp (NYSE: EMC) a Hopkinton, Mass., company said that demand for its products is still strong, while dispelling worries about a slowdown in tech spending and reporting record results in its third quarter. Its strong Q3 performance is a result of providing efficient ways to store and access mounting troves of documents and media along with security products, as well as virtualization software through its majority ownership in VMware Inc.

Although the services that EMC provides are exactly what customers are looking for, the future outlook is worrisome because macroeconomic conditions have created softness in tech spending. EMC’s rival NetApp Inc and Dell Inc have recently warned that business has slowed down over the summer. However, EMC said on Tuesday that worldwide demand for its storage, security and virtualization products is still strong and that it was still on track to exceed its guidance for the year.

Even if there is some weakness in consumer spending on technology, enterprise spending has been on track and EMC is benefitting because it provides customers with products that help them adopt cloud computing. Shares, up 9% over the past 12 months through Monday’s close, added 0.5% to $22.80 in premarket trading.

FBR Capital Markets analyst Daniel Ives said that “it was a strong quarter across the board.”