EMC profit nearly doubles as tech spending rises

Apr 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: India's Flipkart raises $1 bn to tackle Amazon

not rated yet
add to favorites email to friend print save as pdf

Related Stories

EMC returns to profit growth, net income up 58 pct

Jan 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.

EMC net falls 43 pct, still tops Street views

Jul 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.

Qualcomm stock tumbles on cautious forecast

Jan 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 ...

Qwest Communications 3Q earnings fall 6 pct

Oct 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.

IBM's earnings indicate tech spending picking up

Apr 19, 2010

(AP) -- IBM Corp. said Monday its first-quarter profit jumped 13 percent, and the company offered evidence that corporate technology spending is rebounding after the recession.

Recommended for you

Chinese smartphone makers win as market swells

5 hours ago

Chinese smartphone makers racked up big gains as the global market for Internet-linked handsets grew to record levels in the second quarter, International Data Corp said Tuesday.

Full appeals court upholds labels on meat packages

5 hours ago

(AP)—A federal appeals court has upheld new government rules that require labels on packaged steaks, ribs and other cuts of meat to say where the animals were born, raised and slaughtered.

BlackBerry buys German anti-eavesdropping firm

6 hours ago

Canadian smartphone maker BlackBerry announced Tuesday the purchase of German voice and data encryption and anti-eavesdropping firm Secusmart, whose customers include NATO and German Chancellor Angela Merkel ...

India's Flipkart raises $1 bn to tackle Amazon

7 hours ago

India's top e-commerce company Flipkart said Tuesday it had raised $1 billion (60 billion rupees) in funds as it battles US giant Amazon for supremacy in the hyper-competitive local market.

User comments : 0