This excerpt taken from the EMC 8-K filed Jan 24, 2006.
First $1 Billion Quarter in Software Revenues
HOPKINTON, Mass. January 24, 2006 EMC Corporation (NYSE:EMC), the world leader in information management and storage, today reported strong fourth quarter and full fiscal year financial results for 2005, establishing new company records for quarterly and full year revenues.
Total consolidated revenue for EMCs fourth quarter was $2.71 billion, 15% higher than the $2.36 billion reported for the fourth quarter of 2004. Excluding the fourth quarter charges discussed below, net income for the quarter grew 27% to $409 million or $0.17 per diluted share, compared with $321 million or $0.13 per diluted share reported for the fourth quarter of 2004. Including these charges, net income for the quarter was $148 million or $0.06 per diluted share.
Total consolidated revenue for EMCs full 2005 fiscal year was $9.66 billion, 17% higher than the $8.23 billion reported for the full 2004 fiscal year. Diluted earnings per share for the full fiscal year, excluding the special items discussed below, grew 47% to $0.53. Including these items, net income for the year grew 30% to $1.1 billion or $0.47 per diluted share.
Joe Tucci, Chairman, President and CEO of EMC, said, We closed a record year with a record quarter. Our combined software businesses had their first billion-dollar quarter and our market-leading midrange storage systems had their best quarter ever.
In 2005 we invested more than a billion dollars in research and development to make information lifecycle management really come alive for customers. We will continue our aggressive rollout of new products in 2006 to help organizations around the world tackle relentless information growth, improve productivity, lower technology and operational costs, and simplify their information infrastructures.
With 10 consecutive quarters of double-digit revenue growth behind us, we fully expect our momentum and level of execution to continue into 2006 and beyond. During the year our platforms and our portfolio of software and services will continue to expand to address new markets and customer priorities. With information technology utilization rates at record highs and capital
expenditures approaching record lows, we expect even stronger interest among our customers for these new offerings and the value they provide.
Systems revenue grew 19% in the fourth quarter compared with the year-ago quarter, to $1.3 billion. EMC grew its software license and maintenance revenues 16% to a record $1.0 billion during the quarter. Professional services, systems maintenance and other services revenue grew 4% to $403 million.
EMC had double-digit revenue growth across each of its major geographies during the quarter. International revenue growth outpaced revenue growth in North America as EMC continued to benefit from investments made in regions where the company has been traditionally under-represented.
Bill Teuber, EMCs Executive Vice President and Chief Financial Officer, said, It was a quarter and year of billions. In addition to reaching a billion dollars in quarterly software revenues and spending more than a billion dollars during the year on R&D, we bought back more than $1 billion of our stock during the year. We also invested nearly $700 million of cash in several strategic acquisitions in 2005, further strengthening our core business and expanding EMC into new, adjacent markets.