New storage line raises EMC profit

Storage giant EMC on Wednesday exceeded analysts estimates, reporting an improved financial performance in the first quarter due to strong sales of its new products.

The company posted a net income of $35 million, or 2 cents a share, on revenue of $1.38 billion. In the same quarter last year, EMC reported a net loss of $77 million, or 3 cents a share, on revenue of $1.3 billion.

EMC beat analyst estimates of a 1 cent per-share profit, according to First Call. EMC said it expects to remain profitable for each quarter this fiscal year.

The storage industry had a 15 percent decline in overall revenue last year and is struggling to turn things around this year amid continued weakness in IT spending.

Shares of EMC rose 53 cents, or 6.8 percent, to $8.30 in early trading. The company reported its results before the stock market opened.

"We achieved significant improvement in our profitability due to the popularity of our new line of storage platforms," said Bill Teuber, EMC chief financial officer, in a statement.

Revenue from EMC's new high-end storage systems, the Symmetrix DMX series, contributed more than 50 percent of total Symmetrix systems.

EMC's storage software generated a 6 percent increase in revenue during the first quarter, compared with year-ago figures; its storage services business posted a 28 percent increase in revenue compared with the same time a year ago.