EMC CEO: Dell Buyout Is ‘Best Strategic Option’
When EMC announced Q4 2015 results this morning, CEO Joe Tucci made a clear, concise statement about Dell’s pending $67 billion buyout of the storage giant.
“Together, EMC and Dell will be better positioned in the market,” Tucci said. “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.”
That statement, issued ahead of the storage company’s earnings call this morning, reinforces that Dell, EMC and VMware are committed to their business combination — regardless of how Wall Street reacts to EMC’s earnings today and VMware’s earnings from yesterday.
EMC Q4 2015 Earnings Results
Revenues for Q4 2015 were $7 billion — essentially flat with Q4 2014. Net income dipped to $771 million, down from $1.15 billion in Q4 2014. Still, the results met Wall Street’s expectations. David Goulden, CEO of EMC Information Infrastructure, pointed to several growth opportunities in 2016, including Flash, Scale-Out, Software Defined, Cloud Enabled and Trusted technologies.
Among other highlights:
- XtremIO ended the year with over $1 billion in revenue.
- VCE exited 2015 with an annualized demand5run rate exceeding $3 billion.
- Virtustream ended the fourth quarter with the strongest quarterly bookings in its history, though the company didn’t disclose the figure.
- Pivotal Q4 revenue rose 25% year over year.
The earnings results come after EMC disclosed layoffs and a reorganization plan in late December 2015. Somewhat similarly, VMware had some layoffs this month and the virtualization company on January 26 forecast weaker than expected revenues for 2016. Still, several VMware product lines — particularly NSX network virtualization, End User Computing and Virtual SANs — are showing strong growth.
EMC Partner Program
More recently, EMC this month updated its partner program to help IT service providers earn more perks more rapidly. The company has also rebranded VCE as the EMC Converged Platforms Division. That division will operate within EMC’s overall channel partner program.