Feeds

EMC squares up for on-target year

Holding steady

  • alert
  • submit to reddit

HP ProLiant Gen8: Integrated lifecycle automation

US storage giant EMC has reiterated its guidance for the year, disappointing investors slightly. The company is expecting profits of about $850m on revenue of around $8.1bn in 2004, in line with analysts' average expectations. This would represent year-on-year revenue growth of approximately 30 per cent.

At an analyst day in New York, the company also reaffirmed its outlook for earnings of $0.08 per share on revenue of between $1.95bn and $1.97bn in the second quarter. EMC expects worldwide IT spending to rise by between 3 per cent and 4 per cent in 2004. It projects spending on storage to increase by 7 per cent in 2004, compared to 4 per cent growth in 2003.

On the back of the news, shares in EMC tumbled on the New York Stock Exchange and then recovered marginally, as investors displayed disappointment that guidance figures had not been revised upwards. The company beat analyst expectations in mid-April when it reported double-digit revenue growth and triple-digit net income growth for the first quarter of 2004.

Bill Teuber, EMC's chief financial officer, said that since EMC reported its first quarter earnings, the company had purchased approximately 23.5m shares of its stock for about $265m, bringing its year-to-date purchases to a total of 26.6m shares for $310m.

He introduced the newly-formed EMC Software Group, which is to bring EMC's core software, Legato and Documentum businesses together. The new division is expected to have revenues of about $1.5bn in 2004.

The recent acquisitions of software firm VMware, content management company Documentum and Legato Software will increasingly add to revenues over the next four to six quarters, according to analysts.

EMC outlined VMware's "virtual infrastructure" (VI), which aims to help optimise server, network and storage resources, and detailed VI's role in customer IT initiatives.

Joe Tucci, EMC chief executive officer, spoke to the analysts about business strategies for "information lifecycle management" (ILM). The growth of information propelled by business and the proliferation of unstructured content such as rich media and e-mail is outpacing the growth of IT budgets, he said. "ILM helps companies around the world deal with this growth in data while lowering costs for sharing, managing and protecting the company's valuable information assets."

EMC also previewed new software capabilities that aim to allow organisations to create and automate storage policies which will automatically assign and move content among different tiers of storage.

© ENN

Related stories

EMC puts voodoo in new software biz
EMC retools archiving software
EMC, Dell and Brocade enjoy ménage à SAN
Dell flies the flag for Fibre Channel
ONStor's virtual NAS for SAN convergence

Reducing security risks from open source software

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.