EMC squares up to charges, sees profit fall
That's gotta hurt
Storage vendor EMC Corp today reported a 14 per cent first quarter profit drop and blamed acquisition-related expenses for the fall.
The Massachusetts-based firm said it coughed a $79.2m non-cash charge for in-process research and development that came from company buy-outs during the quarter.
The costly charges pushed net income down to $268.8m, or 13 cents a share, down from $312.6m, or 15 cents in the same period a year ago.
However, EMC notched up a healthy 17 per cent sales growth to $3.47bn for Q1, ended 31 March 2008, compared to the same quarter last year.
Excluding the recent acquisitions splurge, the firm, in line with Wall Street expectations, brought in $348m, or 16 cents a share, pushing earnings down from $380.2m, or 13 cents a share, a year earlier.
EMC, which majority-owns virtualisation market leader VMWare that yesterday reported a massive 70 per cent Q1 revenue surge, said it remained on target to achieve its 2008 financial objectives.
This way for the EMC press release. ®