EMC has refused to provide revenue guidance due to the uncertainmacro-economic conditions but reckons global IT spending will decline in themid to high digits this year, and that budgets will free up more in the secondhalf of the year.
The admonition came as the US storage behemoth revealed it hadbroken the $4bn revenue milestone for the fourth quarter, up 5% year-on-yearbut profits made during the period dropped 45% to $288m.
For the year company revenues grew 12% to $14.8bn andprofits dropped 19.2% $1.34bn.
David Goulden, chief financial officer at EMC said the firmmanaged its cost base in 2008, “Through 2009 we will continue to streamlineoperations, reduce costs and strengthen the efficiencies of our globaloperations.”
Earlier this month, EMC revealed that it plans to lay-off2,400 staff worldwide in 2009, consolidate back office functions, field andcampus offices and reduce layers of management.
CEO Joe Tucci has already warned that the downturn couldspill into 2010 and earlier today the firm said economic climate made itdifficult to forecast revenues for 2009 but expected IT spending worldwide tofall in the mid to high single digits.
In a conference call with analysts Tucci said “I don’t thinkwhat we are saying for the year has a lot of merit for lack of visibility. ButI do think what we are saying has merit for the next four to six months”.
“We are all witnessing a severe economic crisis being playedout across the globe,” he added.