EMC profit nearly doubles as tech spending rises

April 21, 2010

(AP) -- Data-storage company EMC Corp. reported a 92 percent jump in net income Wednesday and raised its full-year forecast, with technology spending rebounding.

The company said it earned $373 million, 17 cents per share, for the first quarter. That compares with $194 million, 10 cents per share, in the same period of 2009.

Excluding one-time items such as restructuring and acquisition-related costs, EMC would have earned 26 cents per share. On that basis, topped the average forecast of 24 cents, according to Thomson Reuters.

Revenue climbed 23 percent to $3.9 billion, beating the forecast of $3.7 billion.

The company's stock climbed 49 cents, or 2.5 percent, to $19.90 ahead of regular trading.

The sharp increase in revenue at EMC, following optimistic reports from tech bellwethers IBM Corp. and Corp., should add to the evidence that technology spending by businesses is growing again after the forced many companies to put off updating older equipment and software.

In a statement, EMC David Goulden said corporate customers are showing "increased confidence" and moving beyond just cost-cutting initiatives.

The company now expects 2010 earnings of $1.18 per share, excluding items, on revenue of $16.5 billion. Analysts were looking for $1.14 per share and revenue of $16 billion.

Explore further: Amazon 1Q profit, revenue jump on strong sales

0 shares

Related Stories

EMC net falls 43 pct, still tops Street views

July 23, 2009

(AP) -- Fresh off a successful bid for a major acquisition, EMC Corp. said Thursday that its second-quarter profit plunged 43 percent as companies remained hesitant to spend money on technology.

Qwest Communications 3Q earnings fall 6 pct

October 28, 2009

(AP) -- Qwest Communications International Inc. reported a 6 percent drop in third-quarter profit Wednesday as customers continue to give up traditional landline telephones.

EMC returns to profit growth, net income up 58 pct

January 26, 2010

(AP) -- EMC Corp. said Tuesday that its net income jumped 58 percent in the latest quarter, the first time since the spring of 2008 that profit has risen at the information-management company.

Qualcomm stock tumbles on cautious forecast

January 27, 2010

(AP) -- Qualcomm Inc., whose chips and other technologies are used in vast numbers of cell phones, sounded a cautious note on the economy on Wednesday, saying a "subdued" recovery forced it to slightly dial back expectations ...

Recommended for you

Interactive tool lifts veil on the cost of nuclear energy

August 24, 2015

Despite the ever-changing landscape of energy economics, subject to the influence of new technologies and geopolitics, a new tool promises to root discussions about the cost of nuclear energy in hard evidence rather than ...

Smart home heating and cooling

August 28, 2015

Smart temperature-control devices—such as thermostats that learn and adjust to pre-programmed temperatures—are poised to increase comfort and save energy in homes.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.