Second-Quarter 2016 Summary:
* Consolidated revenue of $6 billion.
* GAAP and non-GAAP EPS up 16% and 5% year over year, respectively.
* Operating cash flow of $1.6 billion and free cash flow of $1.34 billion, up 56% and 108% year over year, respectively.
EMC reported second-quarter 2016 financial results. Second-quarter consolidated revenue was $6 billion. GAAP earnings per weighted average diluted share was $0.29 in the second quarter, up 16% year over year. Non-GAAP^1 earnings per weighted average diluted share in the second quarter was $0.45, up 5% year over year.
EMC generated $1.6 billion in operating cash flow and $1.34 billion in free cash flow^2 in the second quarter, and ended the quarter with $16.1 billion in cash and investments.
Joe Tucci, EMC Chairman and CEO, said, "We had a strong second quarter and are well positioned as we look forward to combining with Dell to establish the world's largest privately controlled, integrated technology company. We expect the transaction to happen under the original terms and within the originally announced timeframe, following the result of tomorrow's Special Meeting of Shareholders, regulatory approval from China and completion of customary closing conditions."
Denis Cashman, EMC CFO, said, "We executed well in the second quarter, and are pleased with our free cash flow performance, which was up 108% year over year. GAAP and non-GAAP revenue in the second quarter was flat and down 1% year over year, respectively. We once again experienced a higher-than-expected build in unshipped storage product orders due to the timing of bookings within the quarter. Adjusting for an approximately $130 million increase in unshipped orders compared to the year ago quarter, EMC's consolidated non-GAAP revenue in the second quarter grew 1% year over year."
David Goulden, CEO of EMC Information Infrastructure, said, "Many of the products announced early in the year, including our newer technologies, are making great traction as customers advance their IT and digital business transformation initiatives, contributing to a strong second quarter. Most notably, our expanded all-flash storage portfolio, converged and hyper-converged portfolio, as well as our enterprise hybrid cloud and Virtustream cloud solutions performed very well. We also announced a number of major product announcements in the second quarter at EMC World. Initial customer response has been tremendous. Turning toward our coming together with Dell, I'm incredibly excited about the impact we will make for customers as we continue to invest and innovate in support of their most strategic IT-led initiatives."
Second-Quarter Highlights
* Within the EMC Information Infrastructure business, demand^3 for the expanded, market-leading all-flash array portfolio grew at 100% year over year and was at an annual run rate^3 of well over $2 billion in the second quarter. In the second quarter, demand^3 for Virtustream Enterprise Cloud services grew triple digits year over year. Demand^3 in the second quarter for EMC's market-leading Converged Infrastructure portfolio grew 40% year over year, and customer adoption of hyper-converged products was very strong in the second quarter. Demand^3 for the Enterprise Hybrid Cloud Solution in the first-half of 2016 grew 178% year over year.
* VMware second-quarter revenue within EMC was $1.68 billion, up 11% (GAAP) and 6% (non-GAAP) year over year.
* Pivotal second-quarter revenue was up 49% year over year. Pivotal continues to have success with its cloud and big data subscription software, with annual recurring revenue4 up triple digits year over year in the second quarter.
EMC released its financial results today to closely align with the timing of VMware's published results. Due to the pending EMC merger with Dell, EMC will not hold a corresponding conference call for investors. Detailed financial information on the quarter will be available within the company's regularly scheduled 10-Q filing with the SEC.
Resources
* For more information about Dell and EMC combining visit http://www.emc.com/futureready
* Visit the VMware Investor Relations Web site for more detail on its second-quarter results
* The Special Meeting of Shareholders to approve the merger agreement among Denali Holding Inc., Dell Inc., Universal Acquisition Co., and EMC will take place at 10:00 a.m. Eastern Time on July 19, 2016. Visit the EMC Investor Relations Web site to join the Webcast.
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