EMC, the leading maker of corporate data storage system, yesterday became the latest high-tech company to blame a slowdown of IT spending in the US and Europe for a shortfall in revenues and profits.

The firm, once viewed as a safe haven from the tech slowdown, said first quarter revenues would increase 29 per cent year on year to $2.3 billion (£2.6 billion). That compared with fourth-quarter revenues of $2.62 billion. Earnings would be 18 US cents a share against consensus estimates of 20 US cents. The group will announce complete results next Thursday.

EMC employs 1,700 people in Cork and Dublin and has no plans to lay off staff, said Mr Mike Ruettgers, executive chairman. The company's shares fell 5 per cent to $32.67 by midday, against a 2 per cent rise in Nasdaq. "It appears to affirm that storage is still reasonably robust," said an analyst at JP Morgan H&Q in San Francisco.