EMC cuts sales forecast on weaker US spending

Consolidated revenue was $5.5 billion for the quarter and earnings per share at 27 cent

Joseph “Joe” Tucci, chairman and chief executive officer of EMC Corp

Joseph “Joe” Tucci, chairman and chief executive officer of EMC Corp

 


Profit at technology company EMC fell short of analysts’ estimates in the third quarter, and the company cut sales and earnings forecasts as weaker government spending in the US hit home.

Revenue at EMC, which specialises in cloud and big data, rose 5 per cent in the third quarter as its information infrastructure business grew and revenue growth for VMware and Pivotal accelerated.

Consolidated revenue was $5.5 billion for the quarter and earnings per share at 27 cent. However, sales were $250 million below what EMC had anticipated.

Despite the disappointment, chief operating officer David Goulden said the company had achieved almost all of its strategic and operational goals, with some encouraging signs in the storage market.

Chief executive of the group Joe Tucci said the company’s confidence remained strong in its long-term strategy.

The company, which employs 60,000 people throughout the world, has a centre of excellence in Cork, one of the company’s largest development sites outside the US. The firm recently announced it was investing €100 million in Ireland, creating 200 jobs and opening a new office.

EMC Ireland country manager Gerry Murray said big data was set to transform businesses, improving decision making, creating better customer insights and improving business performance.

“With the strategy, products and momentum in our favour, EMC is well positioned to help customers in Ireland and across the world to store, manage, protect and analyse their most valuable asset – information – in a more agile, trusted and cost-efficient way,” he said.

“Here in Ireland we continue to secure major deals with strategic partners, consolidating our presence while helping our customers to generate commercial returns for the investments they make in new technologies.”