EMC Corporation (
EMC)
Q3 2009 Earnings Call Transcript
October 22, 2009 8:30 a.m. ET
Executives
Anthony Takazawa - Vice President, Global Investor Relations
David I. Goulden - Executive Vice President and Chief Financial Officer
Joseph M. Tucci - Chairman, President and Chief Executive Officer
Analysts
Aaron Rakers - Stifel Nicolaus & Company, Inc.
Benjamin Reitzes - Barclays Capital
Alex Kurtz - Merriman Curhan Ford & Co.
Wamsi Mohan - Banc of America/Merrill Lynch
Mark Moskowitz - JP Morgan
William Fearnley - FTN Equity Capital Markets
Rajesh Ghai - ThinkEquity Llc
Paul Mansky - Canaccord Adams
Douglas Ireland - JMP Securities LLC
Troy Jensen - Piper Jaffray
Jayson Noland - Robert W. Baird and Co. Inc.
Robert Cihra - Caris & Company
Kaushik Roy - Wedbush Morgan Securities Inc.
Presentation
Operator
Good morning. Welcome and thank you for standing by. At this time, all participants are on a listen-only mode. During the question-and-answer session, please press star one on your touchtone phone. Today’s conference is being recorded. If you have any objections, you may disconnect at this time.
I’d now like to turn the conference over to the host for today’s conference call, Mr. Tony Takazawa. Sir, you may begin.
Anthony Takazawa
Thank you, Julianne. Good morning. Welcome to EMC’s call to discuss our financial results for the third quarter of 2009. Today, we are joined by Joe Tucci, EMC Chairman and CEO; and David Goulden, EMC Executive Vice President and CFO.
David will provide a few comments about the results that we released this morning. He will highlight some of EMC’s activities this quarter and discuss some modeling assumptions for the rest of 2009. Joe will then spend some time discussing his view of what is happening in the market, EMC’s execution of the strategy and how EMC is positioned. After the prepared remarks, we will then open up the line to take your questions.
I would like to point out that we will be referring to non-GAAP numbers in today’s presentation unless otherwise indicated. The reconciliation of our non-GAAP comments to our GAAP results can be found in the disclosure today in our press release, supplemental schedules and slides that accompany our presentation. All of these are available for download within the Investor Relations section of emc.com.
As always, we have provided detailed financial tables in our news release and on our corporate website. And with regard to details of VMware’s results, we refer you to their financial release from last night.
The call this morning will contain forward-looking statements, information concerning factors that could cause actual results to differ can be found in EMC’s filings with the U.S. Securities and Exchange Commission. Lastly, I will note that an archive of today’s presentation will be available following the call.
With that, it’s now my pleasure to introduce David Goulden. David?
David I. Goulden
Thanks, Tony. Good morning. And thank you for joining us today. I am pleased to announce that EMC achieved solid Q3 results, with revenues of $3.5 billion, up 8% from Q2, non-GAAP EPS of $0.23, up 28% from Q2 and free cash flow of $745 million, up 86% from Q2.
It is encouraging to see our focused efforts resulted in good sequential revenue growth, improving profitability and strong free cash flow in what continues to be a challenging economic and IT spending environment.
Within these results, our EMC Information Infrastructure business achieved $3 billion in revenues and about $0.20 of non-GAAP EPS. VMware also had a solid third quarter contributing $489 million of revenue and almost $0.04 of non-GAAP EPS to EMC.
