Feeds

EMC celebrates record revenue, axes 2,400 heads

2008 is not 2009

Beginner's guide to SSL certificates

After Intel told the world it wasn't going to make its Q4 numbers, storage juggernaut EMC decided it was a good time to give everyone some good news.

Today, following the market close on Wall Street, EMC released preliminary financials for Q4, saying that it had approximately $4bn in sales and earnings. That's 13 cents to 14 cents per share, after taking away a 10 cents per share restructuring charge to cut costs in 2009 and 2010.

That $4bn in revenue for Q4 represents an 8 per cent increase from the third quarter, and a more modest increase of 4 per cent against the fourth quarter of 2007. The earnings were in line with Wall Street's estimates - at least until the restructuring charges kicked in.

"We are very pleased with our preliminary Q4 financial results," read a statement from Joe Tucci, EMC's president, chief executive officer, and chairman. "We were able to generate all-time record revenue and strong sequential revenue growth against the backdrop of a challenging global economy. Customers are telling us that information infrastructure and virtualization products and solutions are at or very near the top of their IT spending priorities. This, coupled with the technological advantage and quality of EMC's solutions and the strength of our sales and service organizations, helped us achieve our Q4 financial goals."

To get costs better in line with revenue expectations going forward, however, EMC said that it was restructuring its Information Infrastructure business and was quick to point out that its VMware subsidiary is not part of this business and is therefore not being restructured. EMC said that it will book a $248m restructuring charge in the fourth quarter of 2008 and then an additional $100m to $125m across the next two years as it consolidates back office operations, reduces management layers, cuts travel expenses, and reduces expenses on contractors and third-party services.

As part of the restructuring, EMC will cut some 2,400 employees - or about 7 per cent of its 34,300 workforce related to the Information Infrastructure business. The changes will save EMC approximately $350m in 2009 and about $500m in 2010. EMC has just under 38,000 employees worldwide, and its disk array and related software storage business is by far the largest piece of the EMC pie. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
'Internet Freedom Panel' to keep web overlord ICANN out of Russian hands – new proposal
Come back with our internet! cries Republican drawing up bill
What a Mesa: Apple vows to re-use titsup GT sapphire glass plant
Commits to American manufacturing ... of secret tech
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Driving business with continuous operational intelligence
Introducing an innovative approach offered by ExtraHop for producing continuous operational intelligence.
Why CIOs should rethink endpoint data protection in the age of mobility
Assessing trends in data protection, specifically with respect to mobile devices, BYOD, and remote employees.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.