Feeds

EMC stages $100m international reorganisation

One holding company to bind them all

Choosing a cloud hosting partner with confidence

EMC is reorganising its various international operations into a single holding company and repatriating $4bn to EMC USA at a cost of $100m in taxes.

The bare details are laid out in a November 18 SEC filing. This says EMC will transfer:

Certain assets of its RSA and Data Domain entities and legacy foreign corporations owned directly by EMC into a single EMC international holding company. The international subsidiaries acquired in connection with its acquisitions of RSA and Data Domain will be combined into EMC’s existing foreign companies. In connection with the reorganization, EMC’s international holding company will issue to EMC Corporation approximately $4 billion of consideration consisting of stock and cash. This plan is part of EMC’s ongoing cost transformation program and is intended to facilitate EMC’s international expansion, reduce costs, improve the efficiency and effectiveness of the company’s organizational structure, further strengthen the company’s operations and position the company for improved business agility in the future.

The purchases of RSA and Data Domain meant EMC had multiple subsidiaries in the same geographies and these overlaps are being tidied up.

The reorganisation will be completed some time in 2010, in which year "cost reduction actions are expected to generate savings of $500m compared with 2008." There will be no job losses or office closures associated with the re-organisation, according EMC spokesperson Michael Gallant quoted in the Wall Street Journal.

EMC now says "Consolidated EMC revenues are expected to be $4.0bn for the fourth quarter of 2009 and $13.9bn for 2009," and earnings per share will be a little lower.

There is speculation about what EMC might do with its $4bn of incoming funds, with some people thinking of acquisitions. Others think this is just a cost-saving internal re-organisation and, from the EMC earnings and share value point of view, a non-event. ®

Remote control for virtualized desktops

More from The Register

next story
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
NASA launches new climate model at SC14
75 days of supercomputing later ...
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
DEATH by COMMENTS: WordPress XSS vuln is BIGGEST for YEARS
Trio of XSS turns attackers into admins
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.