Common-Size Income Statement
Quarterly Data

EMC Corp., common-size consolidated income statement (quarterly data)

3 months ended:	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013	Dec 31, 2012	Sep 30, 2012	Jun 30, 2012	Mar 31, 2012	Dec 31, 2011	Sep 30, 2011	Jun 30, 2011	Mar 31, 2011
Product sales	52.53%	48.99%	58.66%	53.78%	53.78%	51.75%	61.34%	56.37%	56.45%	54.90%	62.19%	57.14%	58.03%	57.76%	61.83%	58.44%	59.85%	60.24%	63.52%	61.73%	62.82%	63.62%
Services	47.47%	51.01%	41.34%	46.22%	46.22%	48.25%	38.66%	43.63%	43.55%	45.10%	37.81%	42.86%	41.97%	42.24%	38.17%	41.56%	40.15%	39.76%	36.48%	38.27%	37.18%	36.38%
Revenues	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%
Cost of product sales	-21.72%	-22.85%	-23.78%	-22.68%	-23.90%	-23.68%	-23.69%	-23.21%	-23.33%	-23.65%	-24.40%	-23.90%	-23.87%	-25.17%	-23.38%	-24.49%	-23.62%	-25.55%	-25.16%	-25.49%	-27.39%	-28.66%
Cost of services	-16.19%	-17.61%	-14.07%	-16.37%	-16.29%	-16.84%	-12.40%	-14.74%	-14.52%	-15.26%	-12.38%	-13.96%	-13.63%	-13.62%	-12.11%	-13.22%	-13.36%	-13.34%	-11.63%	-12.94%	-13.16%	-12.76%
Cost of revenues	-37.91%	-40.46%	-37.85%	-39.05%	-40.19%	-40.51%	-36.09%	-37.95%	-37.86%	-38.91%	-36.78%	-37.86%	-37.50%	-38.79%	-35.49%	-37.71%	-36.98%	-38.89%	-36.79%	-38.43%	-40.56%	-41.42%
Gross profit	62.09%	59.54%	62.15%	60.95%	59.81%	59.49%	63.91%	62.05%	62.14%	61.09%	63.22%	62.14%	62.50%	61.21%	64.51%	62.29%	63.02%	61.11%	63.21%	61.57%	59.44%	58.58%
Research and development	-13.64%	-14.87%	-11.33%	-13.19%	-13.04%	-14.04%	-10.68%	-12.72%	-12.59%	-13.34%	-10.54%	-12.38%	-12.38%	-12.54%	-10.99%	-12.37%	-12.35%	-11.54%	-10.06%	-11.00%	-11.12%	-10.90%
Selling, general and administrative	-33.80%	-36.29%	-32.06%	-35.29%	-35.05%	-36.29%	-30.22%	-32.99%	-34.18%	-33.80%	-30.38%	-32.66%	-31.80%	-31.81%	-31.98%	-32.37%	-32.32%	-32.39%	-32.20%	-32.39%	-32.52%	-32.47%
Restructuring and acquisition-related charges	0.02%	-0.89%	-3.19%	-1.12%	-0.38%	-2.41%	-0.72%	-0.65%	-0.51%	-2.17%	-0.44%	-0.72%	-0.12%	-2.74%	-0.50%	-0.51%	-0.52%	-0.51%	-0.52%	-0.41%	-0.44%	-0.58%
Operating income	14.66%	7.49%	15.57%	11.35%	11.34%	6.75%	22.29%	15.70%	14.86%	11.77%	21.86%	16.37%	18.20%	14.12%	21.04%	17.03%	17.83%	16.67%	20.43%	17.77%	15.37%	14.63%
Investment income	0.43%	0.24%	0.27%	0.41%	0.43%	0.43%	0.33%	0.48%	0.60%	0.66%	0.52%	0.47%	0.61%	0.62%	0.49%	0.57%	0.49%	0.58%	0.41%	0.65%	0.74%	0.83%
Interest expense	-0.70%	-0.75%	-0.60%	-0.67%	-0.68%	-0.71%	-0.55%	-0.66%	-0.58%	-0.62%	-0.69%	-1.05%	-0.55%	-0.39%	-0.34%	-0.41%	-0.35%	-0.36%	-0.62%	-0.89%	-0.96%	-0.98%
Other income (expense), net	-0.23%	0.07%	0.78%	0.36%	0.40%	0.18%	-0.09%	-1.71%	-1.12%	-1.39%	-0.91%	-0.99%	-1.05%	-1.52%	-0.64%	-1.19%	-0.96%	-0.86%	-1.42%	-1.20%	0.63%	-0.94%
Non-operating income (expense)	-0.50%	-0.44%	0.46%	0.10%	0.15%	-0.11%	-0.31%	-1.89%	-1.11%	-1.35%	-1.08%	-1.57%	-1.00%	-1.29%	-0.49%	-1.04%	-0.82%	-0.64%	-1.64%	-1.44%	0.41%	-1.08%
Income before provision for income taxes	14.16%	7.05%	16.02%	11.45%	11.49%	6.65%	21.97%	13.81%	13.76%	10.42%	20.77%	14.80%	17.21%	12.83%	20.55%	15.99%	17.01%	16.04%	18.79%	16.33%	15.78%	13.55%
Income tax provision	-3.69%	-1.63%	-4.13%	-2.76%	-2.83%	-1.46%	-4.77%	-3.42%	-3.18%	-2.54%	-4.47%	-3.27%	-3.85%	-1.41%	-5.42%	-3.51%	-4.03%	-3.75%	-3.14%	-3.44%	-3.56%	-2.64%
Net income	10.47%	5.42%	11.89%	8.69%	8.65%	5.18%	17.21%	10.39%	10.58%	7.88%	16.30%	11.54%	13.36%	11.41%	15.12%	12.48%	12.98%	12.29%	15.65%	12.89%	12.21%	10.91%
Net income attributable to the non-controlling interests	-0.81%	-0.53%	-0.90%	-0.79%	-0.53%	-0.69%	-0.95%	-0.66%	-0.56%	-0.73%	-1.00%	-0.96%	-0.87%	-0.65%	-0.70%	-0.61%	-0.75%	-0.77%	-0.73%	-0.73%	-0.93%	-0.55%
Net income attributable to EMC Corporation	9.66%	4.89%	10.99%	7.90%	8.12%	4.49%	16.26%	9.73%	10.02%	7.15%	15.29%	10.58%	12.49%	10.77%	14.43%	11.87%	12.23%	11.52%	14.93%	12.16%	11.28%	10.36%

The financial data reveals several trends related to the composition of revenues, cost structure, profitability, and expense management over the analyzed periods.

Revenue Composition

Product sales as a percentage of total revenues show a generally declining trend, decreasing from about 63.62% in Q1 2011 to 48.99% in Q1 2016, which indicates a gradual shift away from product sales. Correspondingly, services revenue increases steadily from 36.38% to 51.01% over the same period, suggesting a strategic or market-driven shift towards service-based revenue generation.

Cost Structure

The cost of product sales relative to revenues decreases modestly, moving from -28.66% in early 2011 to -22.85% in mid-2016. This decline may imply improved efficiency or cost control in product manufacturing or sourcing. Conversely, the cost of services experiences a fluctuating but generally increasing trend, from about -12.76% up to approximately -17.61% by early 2016, reflecting pressures or investments associated with service delivery.

The total cost of revenues fluctuates but overall shows a slight increase in cost intensity at certain points, for example peaking around -40.51% in early 2015 before declining to near -37.91% by mid-2016. This pattern suggests varying operational cost dynamics possibly linked to changing business mix or market conditions.

Gross Profitability

Gross profit margins remain relatively stable, oscillating between about 58.58% and 64.51% through the period, reflecting consistent overall profitability despite shifts in revenue composition and cost pressures. Gross profit shows the ability to sustain margins amidst these operational changes.

Operating Expenses

Research and development expenses rise from approximately -10.90% to near -14.87%, indicating increased investment in innovation or product/service development over time. The selling, general, and administrative (SG&A) expenses fluctuate but remain significant, ranging between -30.22% and -36.29%, showing moderate variability without a definitive trend towards reduction or escalation.

Restructuring and acquisition-related charges exhibit irregular spikes at various points, peaking notably around -3.19% in late 2015, implying episodic restructuring or acquisition activity impacting costs.

Operating Income and Profitability

Operating income as a percentage of revenues generally trends downward from a high near 20.43% in late 2011 to a lower 6.75% in early 2015 but recovers to roughly 14.66% by mid-2016. This fluctuation suggests periods of margin pressure followed by partial recovery.

Investment income remains low but stable, around 0.24% to 0.83%, while interest expense tends to decrease slightly in proportion to revenues over time. Other income (expense), including non-operating income, shows variability with occasional expense spikes, but with some positive reversals later in the period.

Income Before Taxes and Net Income

Income before provision for income taxes follows a pattern similar to operating income, with highs over 20% early on and lows near 6.65%, with recovery toward the end of the period. Income tax provision percentages reflect variability but generally range from approximately -1.41% to -5.42%, indicating fluctuations in tax burden relative to revenues.

Net income as a percentage of revenues trends downward from about 15.65% to around 5.18% before recovering somewhat to approximately 10.47%. The net income attributable to the company shows comparable patterns, emphasizing the impact on shareholders.

Non-controlling Interests

Amounts attributable to non-controlling interests remain relatively minor and fairly constant between -0.53% and -1.00%, indicating limited impact on overall net income variance.

Overall, the data indicates a strategic shift from product-based revenues to service revenues, accompanied by relatively stable gross margins but increasing operating expenses related to R&D and restructuring activities at times. Profitability experienced some pressure mid-period, particularly in operating and net income margins, but there is evidence of partial recovery by mid-2016. Cost management appears to improve slightly on the product side, while service cost pressures persist. The company seems to be navigating through transitional phases of its revenue mix and cost structure with fluctuating but resilient profitability trends.

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EMC Corp. (NYSE:EMC)

Common-Size Income Statement Quarterly Data

Common-Size Income Statement
Quarterly Data