Information infrastructure provider EMC yesterday reported record revenues for the first quarter of the financial year, but the costs incurred acquiring companies meant that profit dropped.

The company’s quarterly revenues were $3.5 billion, up 17% from the same quarter of the previous year. Most of this was derived from its infrastructure division, which includes the storage, content management and security businesses, where revenues grew by 12% to reach $3 billion of the quarter.

However, profits at the company dropped by 14% year-on-year to $268.8 million, down from $312.6 million. The company pointed to a $79.2 million charge relating to acquisition cost by way of explanation for the profit dip.

Some of EMC’s must be attributed to VMware, the virtualisation market leader in which EMC still owns an 86% stake, and whose own financial results were publish a earlier this week.

VMware’s first quarter revenues totalled $438 million, a 69% increase since the same quarter in the previous year. Software license revenue had grown by 73% to reach $294 million and services by 62% to reach $144 million.

In an earnings call, EMC CEO Joe Tucci quashed speculation that the company was planning to sell off its stake in VMware – which it bought in 2003 for around $653 million – in the coming year.

”Right now, we have absolutely, positively, no plans to spin off VMware,” he said.

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