EMC's virtualization software subsidiary reported an 89 percent increase in revenue EMC reported a 20 percent increase in second quarter net income Tuesday on a 21 percent increase in revenue, driven in part by the success of its VMware subsidiary, a portion of which soon will be spun off in an IPO.EMC reported net income of $334.4 million, or $0.16 per share on revenue of $3.12 billion, for the three months ended June 30, compared to net income of $279 million, or $0.12 a share, on revenue of $2.57 billion in the same quarter of 2006.Contributors to EMC’s results included its VMware subsidiary, a provider of virtualization software, which reported a revenue increase of 89 percent to $298 million. EMC is planning to sell off 10 percent of VMware in an IPO (initial public offering) of stock this quarter. EMC said July 9 that VMware stock would be priced between $23 and $25 a share when it goes on the market. EMC also reported 12 percent revenue growth to $2.5 billion for its main line of business, data storage systems, services and software. It’s EMC Clariion line of networked storage systems, reported double-digit growth over the year ago quarter.Along with VMware, revenue from EMC’s RSA Information Security software line grew 21 percent year-over-year.EMC is also flush with cash. It reported operating cash flow of $622 million, up 59 from the year ago quarter, and free cash flow of $422 million, an increase of 123 percent. EMC forecasts net income for share for all of 2007 of $0.64 a share on revenue of $12.7 billion. Software Development