("EMC's 2Q Profit Down 43% Amid Restructuring; View Upbeat,"
published at 7:19 a.m. EDT, incorrectly said the 2009 forecast
excluded Data Domain. A corrected story follows.)
EMC Corp.'s (EMC) second-quarter earnings slid 43% as
information-technology customers continued to pare spending.
The company also gave its first forecast for 2009, projecting
results above analysts' expectations. It sees earnings of 82 cents
and revenue of $13.8 billion, both includingits pending $2.2
billion acquisition of Data Domain Inc. (DDUP). Analysts surveyed
by Thomson Reuters projected 78 cents and $13.49 billion,
respectively.
Also, third-quarter revenue is seen rising 2% to 3% from the
second quarter's $3.26 billion. Analysts anticipated $3.38
billion.
Shares rose 4.8% premarket to $15.10 as second-quarter results
also topped estimates.
EMC has pushed aggressive cost-cutting since the start of the
year, announcing in January it would eliminate 2,400 jobs to save
$350 million. It said in April it would reduce costs by another
$100 million. It has asked employees to take a 5% pay cut but
didn't foresee additional layoffs.
EMC's earnings fell to $205.2 million, or 10 cents a share, from
$360.1 million, or 17 cents a share, a year earlier. Excluding
restructuring and other costs, profit fell to 18 cents from 24
cents.
Revenue dropped 11% to $3.26 billion, or 8% excluding currency
changes. Revenue from VMWare Inc. (VMW), in which EMC holds a
majority stake, contributed $455 million to the top line.
Analysts polled by Thomson Reuters expected per-share earnings
of 16 cents on revenue of $3.2 billion.
-By Melissa Korn and Kevin Kingsbury, Dow Jones Newswires; 212-416-2354; kevin.kingsbury@dowjones.com