Feeds

EMC stages $100m international reorganisation

One holding company to bind them all

Protecting against web application threats using SSL

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. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Wanna keep your data for 1,000 YEARS? No? Hard luck, HDS wants you to anyway
Combine Blu-ray and M-DISC and you get this monster
US boffins demo 'twisted radio' mux
OAM takes wireless signals to 32 Gbps
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
Apple flops out 2FA for iCloud in bid to stop future nude selfie leaks
Millions of 4chan users howl with laughter as Cupertino slams stable door
Students playing with impressive racks? Yes, it's cluster comp time
The most comprehensive coverage the world has ever seen. Ever
Run little spreadsheet, run! IBM's Watson is coming to gobble you up
Big Blue's big super's big appetite for big data in big clouds for big analytics
Seagate's triple-headed Cerberus could SAVE the DISK WORLD
... and possibly bring us even more HAMR time. Yay!
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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.