EMC, a Massachusetts -based data storage device maker, demonstrated a revenue increase during the 2010’s 1st quarter. The company believes a take-it-up-a-notch incentive program played a part in the increase.
Shares were boosted 2.3 percent. Along with this gain, EMC anticipates 2010 to bring adjusted earnings of $1.18 a share.
The company’s Velocity channel incentive program for partners affords incentives and rewards for partners selling to markets that were previously underpenetrated.
The technology industry is currently experiencing an increase in demand; extending its incentive program into 2010 combines with this upward trend to help enhance EMC’s performance. Noting positive results from this strategy, EMC had an 23% increase in revenue in the first quarter of 2010, compared to the revenue experienced in the first quarter of 2009.
EMC, “saw customers move forward with increased confidence, focusing not only on cost-cutting initiatives, but beginning innovative projects in their traditional and virtual data-center infrastructures,” noted David Goulden, CFO of the company.
Greg Richardson, Technology Business Research storage analyst, explained that utilizing the extension of its Velocity incentive program was a strategy EMC used to better position itself for growth in the midmarket. He went on to say that EMC is making strides and “getting comfortable” in that particular market’s arena.