Feeds

EMC's profit drops, along with the spirits of 1,250 staff

Sales surge

7 Elements of Radically Simple OS Migration

Despite strong third quarter storage and software sales, EMC plans to do away with 1,250 staff over the next year.

EMC today disclosed the job cuts as it handed in third quarter results. Revenue surged 19 per cent during the period to $2.82bn. Even when excluding the help of recent acquisitions RSA and Network Intelligence, EMC enjoyed a 17 per cent year-over-year revenue rise to $2.78bn – a company record.

The company, however, wants to clean house after acquiring 21 companies in three years. So, 1,250 staff will have to go by the end of 2007, costing EMC between $150m and $175m. The VMware subsidiary will not be touched by these moves.

Such cuts could improve EMC's bottom line over the long-term. During the third quarter, EMC watched as its profit dipped to $284m from $422m last year.

CEO Joe Tucci marched through about 400 words of marketing fluff in a prepared statement before taking the time to the address the job losses.

"These actions, while difficult, are necessary," Tucci said. "The time is right for us to accelerate the integration of EMC and most of the companies we have acquired over the past three years, create more efficient, centralised corporate functions, reduce management layers, and take greater advantage of opportunities to improve our overall cost structure."

EMC saw hardware revenue rise 19 per cent during the quarter to $1.3bn. Meanwhile, software license and maintenance revenue surged 25 per cent to $1.1bn and services revenue rose seven per cent to $432m.

The VMware subsidiary was a standout once again, growing revenue 86 per cent to $189m.

Investors have watched EMC string together 13 straight quarters of double-digit revenue growth. ®

Best practices for enterprise data

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*
VMware builds product executables on 50 Mac Minis
And goes to the Genius Bar for support
Multipath TCP speeds up the internet so much that security breaks
Black Hat research says proposed protocol will bork network probes, flummox firewalls
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Microsoft's Euro cloud darkens: US FEDS can dig into foreign servers
They're not emails, they're business records, says court
Microsoft says 'weird things' can happen during Windows Server 2003 migrations
Fix coming for bug that makes Kerberos croak when you run two domain controllers
Cisco says network virtualisation won't pay off everywhere
Another sign of strain in the Borg/VMware relationship?
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?