EMC Corp, the top maker of corporate storage gear, on Wednesday said profit fell on one-time charges but revenue rose on growth in all key product areas both in the United States and overseas.
Shares in the company jumped more than 6 percent in pre-market trading, to $16.55 from a close of $15.59 on the New York Stock Exchange on Tuesday as it released the results and announced an expansion of its stock buyback program.
The company’s VMware Inc subsidiary also reported better-than-expected results late on Tuesday,
EMC said its board boosted the size of its stock repurchase plan, adding 250 million shares to its authorization.
Net income fell as it took charges for acquisitions and other costs, dropping to $268.8 million, or 13 cents per share, from $312.6 million, or 15 cents, a year earlier.
Profit excluding a charge for research and development was 16 cents per share in the latest quarter, or 23 cents per share before other one-time items.
Revenue climbed 17 percent to $3.47 billion.
Analysts on average had forecast earnings per share of 16 cents before items on revenue of $3.45 billion, according to Reuters Estimates.
“EMC is off to a solid start to the year, and we remain on track to achieve the 2008 financial targets we set for the business at the beginning of the year,” Chief Executive Joe Tucci said in a statement.
EMC said revenue rose in all regions of the world and in all major product areas despite fears of a pullback in technology spending amid a weakening U.S. economy.
Sales in North America rose 14 percent from a year earlier. Overseas revenue grew at a brisker clip of 21 percent.
Revenue at its storage division, its largest business unit, climbed 12 percent to $2.7 billion. Its star performer was the Celerra group of mid-range and Internet storage products, whose sales rose more than 50 percent.