EMC looks to second-half for better market conditions


EMC looks to second-half for better market conditions

Microscope contributor

EMC has refused to provide revenue guidance due to the uncertain macro-economic conditions but reckons global IT spending will decline in the mid to high digits this year, and that budgets will free up more in the second half of the year.

The admonition came as the US storage behemoth revealed it had broken the $4bn revenue milestone for the fourth quarter, up 5% year-on-year but profits made during the period dropped 45% to $288m.

For the year company revenues grew 12% to $14.8bn and profits dropped 19.2% $1.34bn.

David Goulden, chief financial officer at EMC said the firm managed its cost base in 2008, “Through 2009 we will continue to streamline operations, reduce costs and strengthen the efficiencies of our global operations.”

Earlier this month, EMC revealed that it plans to lay-off 2,400 staff worldwide in 2009, consolidate back office functions, field and campus offices and reduce layers of management.

CEO Joe Tucci has already warned that the downturn could spill into 2010 and earlier today the firm said economic climate made it difficult to forecast revenues for 2009 but expected IT spending worldwide to fall in the mid to high single digits.

In a conference call with analysts Tucci said “I don’t think what we are saying for the year has a lot of merit for lack of visibility. But I do think what we are saying has merit for the next four to six months”.

“We are all witnessing a severe economic crisis being played out across the globe,” he added.

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