EMC Posts Better Than Expected Results, Services Drive Revenue Growth

EMC announced its Q2 earnings on July 22, reporting a 2% year-on-year rise in net revenues to $6 billion. The company’s combined product revenues declined by over 3% y-o-y to $3.2 billion, while combined services revenues rose by 8% y-o-y to $2.8 billion. Combined revenues generated by products and services of EMC’s core information infrastructure division – including storage, RSA information security and content management – were up by about 1% on an annual basis to $4.4 billion. EMC observed a fall in storage product revenues, in keeping with the trend observed through 2014 and Q1’15. On the other hand, revenues generated by VMware and Pivotal (especially services revenues) witnessed a higher growth rate than core information storage to help the company’s top line growth.

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