EMC Corp. revenue for the third quarter grew 34 percent year-on-year, driven by software and services sales, the company reported Tuesday.
Consolidated revenue for the three months to Sept. 30 totalled $2.03 billion, up 34 percent from $1.51 billion a year earlier, while net income rose 37 percent, from $159 million to $218 million, over the same period.
The company met analysts' earnings expectations, with earnings per share of $0.09, compared to $0.07 in the year-earlier quarter.
The company saw particularly strong revenue growth from its Clariion, Centera, and network attached storage businesses, collectively up over 50 percent year on year, and in software licensing, up 56 percent over last year, it said. Software revenue growth was driven by the acquisitions of Documentum, Legato, and VMware, it said.
VMware in particular has prospered under EMC's control, with revenue of $61 million for the quarter, up more than 200 percent compared to a year earlier.
EMC expects revenue to continue growing in the fourth quarter, to between $2.23 billion and $2.27 billion, with earnings per share of between $0.11 and $0.12, it said.
However, the company is slowing its investment in development of new products: Research and development spending slipped to 10.6 percent of revenue in the third quarter, compared to 11.4 percent a year earlier, and an average of 12.1 percent over the first three quarters of last year. The company may be looking to acquire new technologies rather than develop them in house, as it noted good returns from investments made to broaden its product portfolio and reach new customers in high-growth markets.