EMC Reports Fourth-Quarter and Full-Year 2015 Results

EMC Corporation (NYSE:EMC) today reported fourth-quarter and full-year 2015 financial results. Fourth-quarter consolidated revenue was $7 billion and full-year 2015 revenue was $24.7, up 1% year over year

EMC generated $1.9 billion in operating cash flow and $1.5 billion in free cash flow in the fourth quarter, and ended the quarter with $14.8 billion in cash and investments. EMC returned approximately $229 million to shareholders via a quarterly dividend.

Joe Tucci, EMC Chairman and CEO, said, “The fourth quarter of 2015 follows 24 consecutive quarters of reported year-over-year top-line growth; an accomplishment very few of our peers have matched. 2015 brought geopolitical and other market-wide uncertainties, while secular technology trends continued to accelerate. EMC anticipated and focused on capturing the massive growth opportunity these trends will avail, and we are well equipped in 2016 with some of the most exciting technology advancements in our history.”

Tucci added, “Together, EMC and Dell will be better positioned in the market. We believe that the coming together of the companies is the best strategic option for all stakeholders. I'm pleased to report that progress on closing the transaction remains on track under the original terms and timeline.”

Zane Rowe, EMC CFO, said, “As we work toward closing the transaction with Dell to build one of the world's premier IT powerhouses, we continue to focus on synergies and operating efficiencies across our business. Our previously announced $850 million cost reduction and business transformation plan is on track and the initial $50 million cost reduction target was met in Q4. We are confident that we will exceed our goal, thanks to our unified team's effort and focus.”

David Goulden, CEO of EMC Information Infrastructure, said, “Customers are buying ‘just enough' and ‘just in time' for their traditional environments. They are also transforming existing IT systems toward a Hybrid Cloud or building and deploying new digital applications. In some cases they are doing it all simultaneously. Against this market backdrop, our storage business revenue grew 3% in constant currency for the full year. Looking forward, I am excited about our position in 2016 as we further expand our industry-leading Storage and Converged Infrastructure portfolio, which is built upon the architectural pillars of the modern data center – Flash, Scale-Out, Software Defined, Cloud Enabled and Trusted technologies.”

Fourth-Quarter and Full-Year 2015 Highlights

• EMC Information Infrastructure business fourth-quarter revenue was down 4% year over year and full-year 2015 revenue was down 2% year over year. VCE exited 2015 with an annualized demand run rate exceeding $3 billion. Virtustream ended the fourth quarter with the strongest quarterly bookings in its history.
• VMware fourth-quarter and full-year revenue within EMC was up 10% and 9% year over year, respectively. VMware customers continue to invest in Software-Defined Data Centers, Hybrid Cloud solutions and End-User Computing. 
• Pivotal continues to gain momentum as it helps the world's largest enterprises successfully expand their digital capabilities, with fourth-quarter revenue up 25% year over year. Pivotal continues its transition to a subscription business model, with annual recurring revenue up 40% compared to the previous quarter with strong performance in all geographies and product areas.