Data storage group EMC posts quarterly loss

Data storage company EMC today posted its third consecutive quarterly loss.

Data storage company EMC today posted its third consecutive quarterly loss.

EMC, employs 1,400 people in Cork, had a net loss of $76.9 million, or 3 cents a share, compared with a profit last year of $398.8 million, or 18 cents a share.

The company's revenues have tumbled due to a price war with rivals and less customers for its machines that store computer network traffic.

Analysts were looking for EMC to lose 2 cents to 6 cents per share, with a consensus loss estimate of 5 cents, according to Thomson Financial/First Call.

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Storage systems sales fell sharply in the first quarter to $741.6 million, compared with $1.6 billion in the year-ago quarter. Software sales also dropped sharply from year-ago levels to $282.3 million from $467.5 million.

Storage services increased to $238.5 million from $232 million.

EMC said it continues to cut costs as it works to bring expenses in line with falling revenue. The company said it has lowered its quarterly break-even level by over $200 million over the past nine months.

EMC shares closed down 52 cents, or 4.76 per cent, to $10.40 yesterday on the New York Stock Exchange. The stock is off 23 per cent this year, underperforming the 2 per cent decline on the Standard & Poor's 500 Index.