Information storage revenue for the fourth quarter grew 50% compared with the fourth quarter of 1999 to $2.5 billion. This accelerated quarterly growth was achieved by strong performance across all geographies and major product areas, including more than 250% year-to-year revenue growth in networked information storage systems and 72% year-to-year revenue growth in software. Information storage-related revenue represented 95% of EMC’s total consolidated revenue during the quarter.
Total consolidated results for the fourth quarter and the full 2000 fiscal year represented all-time record performance for EMC. Total revenue for the fourth quarter was $2.62 billion, 40% higher than the fourth quarter of 1999. Net income for the fourth quarter was $563 million, up 49% compared with the fourth quarter of 1999 (excluding a one-time acquisition-related restructuring charge taken in the fourth quarter of 1999). On a diluted basis, earnings per share were $0.25 in the quarter, 47% higher than the fourth quarter of 1999 (adjusted for a 2-for-1 stock split effective June 2, 2000; and excluding the 1999 charge).
For the full 2000 fiscal year, EMC’s total revenue was $8.87 billion, up 32% over 1999. Net income for the full 2000 fiscal year was $1.78 billion, up 51% over 1999 (excluding the 1999 charge). On a diluted basis, earnings per share were $0.79 for the year, compared with $0.54 for 1999 (adjusted for the June 2, 2000, stock split; and excluding the 1999 charge).
Mike Ruettgers, EMC’s Executive Chairman, said, We closed an extraordinary year with a bang – four straight quarters of accelerating growth rates, and our highest quarterly storage growth rate in nearly six years. It’s clear we gained share in every major segment of our addressable market, and our competitive lead has never been stronger. Customers are investing in EMC solutions in record numbers because our complete networked information storage infrastructures are by far the most interoperable, functionally rich, scalable and reliable solutions available.
We said at the start of 2000 that information, and access to it, had become the currency of the global economy, Ruettgers continued. As I look at the dynamics of EMC’s 2000 performance, that premise becomes even more apparent. Daily life today is a trail of digital transactions for each and every one of us, transcending socio-economic, industry or geographic boundaries. The simple acts of using a telephone or an ATM, buying groceries, or sending mail create more digital information, every minute of every day. The consistent growth of EMC’s information storage business reflects the way we live today. Speculation over the effects of slowing economic growth on U.S. IT spending should not blur the fact that, in every industry and in every economic mood, information is where competitive advantage lies. And EMC is where information lives.
The quarter featured strength across all geographies and industries. The investments EMC has made internationally continue to pay off, with international revenue representing 41% of EMC’s total in the fourth quarter and 39% for the year. The superior fourth-quarter international results were highlighted by a 134% year-to-year increase in Asia Pacific storage revenue and a 54% year-to-year increase in EMEA (Europe, Middle East and Africa) storage revenue.
Revenue from networked information storage systems grew more than 250% to $770 million in the fourth quarter, compared with $214 million in the year-ago period, as EMC further widened its lead in deploying SAN (storage area network) and NAS (network-attached storage) environments. For the year, EMC shipped $2.1 billion in networked information storage. Software revenue grew 72% to $483 million in the fourth quarter. For the year, software revenue was $1.44 billion, up 75% compared with 1999.
EMC’s balance sheet also continued to strengthen, with cash and investments increasing to $4.75 billion at the end of the quarter.
