EMC Corp. (NYSE: EMC) reported its third-quarter financial results before the markets opened on Wednesday. The company had $0.43 in earnings per share (EPS) on $6.08 billion in revenue. That compared to Thomson Reuters consensus estimates of $0.44 in EPS on revenue of $6.17 billion. The same period from the previous year had EPS of $0.44 and $6.03 billion in revenue.

Revenues were only up 1% year over year, but on a constant currency basis revenues rose 5%.

David Goulden, CEO of EMC Information Infrastructure, said:

As the broader market shifts toward cloud, mobile, social and Big Data, we continue to expect newer storage technologies revenue to grow at high teens while traditional stand-alone storage systems revenue to decline at low teens. We anticipated this trend ahead of the broader market and evolved to a wider and deeper portfolio that has reached an interesting inflection point. For the first time in Q3, our newer storage products6 now make up more than half of our strategic storage business7. This is a good indicator of the progress we’ve made in transitioning the portfolio, setting EMC up nicely for the future.

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In terms of its segments, EMC reported:

• EMC Information Infrastructure revenues were down 3% year over year, but up 2% on a constant currency basis.
• Pivotal revenue was up 16% year over year, and up 18% on a constant currency basis. Pivotal continues its transition to a subscription business model, with annual recurring revenue5 at the end of the third quarter of $75 million.
• VMware revenue was up 10% year over year, and up 14% on a constant currency basis. VMware continues to be a central player in the transformation of IT and its influence continues to grow with key technologies in the software-defined datacenter, end-user computing and hybrid cloud.

In this quarter, EMC generated $1.4 billion in operating cash flow and $1.03 billion in free cash flow. On the books, the company had $14.3 billion in cash and investments.

Joe Tucci, chairman and CEO of EMC, commented on the Dell merger:

This is an historic time for EMC and the entire IT industry. EMC combining with Dell, two highly complementary companies, will create a tech industry powerhouse – a new company with more than $80 billion in revenue that is extremely well positioned for a new era. We firmly believe that this compelling combination is the best strategic option for all our stakeholders. Our customers are sharing overwhelmingly positive feedback about the potential of having a strategic partner with more heft and relevance to drive their digital transformations.

Shares of EMC closed Tuesday down 0.8% at $27.49, with a consensus analyst price target of $30.15 and a 52-week trading range of $22.66 to $30.92. In early trading indications Wednesday, shares were down an additional 2.6% at $26.77.

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