Feeds

EMC celebrates record revenue, axes 2,400 heads

2008 is not 2009

Bridging the IT gap between rising business demands and ageing tools

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. ®

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
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
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
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.