EMC's 2Q net more than doubles as firms stock up

Jul 21, 2010 By JORDAN ROBERTSON , AP Technology Writer

(AP) -- EMC Corp.'s net income more than doubled in the second quarter as corporations opened the spigot on spending for more data storage.

But economic worries because of the European debt crisis and fears of a possible "double-dip" recession in the U.S. have eclipsed encouraging signs from the technology sector. Some investors fear a spike in computer spending may just be a relief valve for pent-up demand that won't stay open long.

Other technology heavyweights such as IBM Corp., Corp. and Inc. have reported higher second-quarter profits but have failed to impress investors.

EMC has now posted three straight quarters of net income increases and said Wednesday before the market opened that it expects to top its earlier guidance for 2010, though it didn't provide more specifics.

EMC is the world's No. 1 maker of computers.

In the second quarter, EMC earned $426.2 million, or 20 cents per share, up from $205.2 million, or 10 cents per share, in the year-ago quarter. Excluding items, EMC earned 28 cents per share, a penny per share better than analysts expected.

Revenue jumped 24 percent to $4.02 billion, topping the $3.98 billion analysts polled by Thomson Reuters expected.

For all of 2010, the company now says it expects to exceed its previous outlook of of $1.18 per share, excluding items, and revenue of $16.5 billion. It didn't provide more detail.

EMC ended the quarter with $10.3 billion in cash and investments. Cost-cutting has helped EMC. The company, based in Hopkinton, Mass., has cut about 2,400 jobs as part of a restructuring announced last year to reduce costs by about $500 million in 2010.

Explore further: New iPhones deliver big profits for Apple (Update)

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.

TI 2Q revenue rises 42 pct as demand roars back

Jul 19, 2010

(AP) -- Texas Instruments Inc.' second-quarter income and revenue jumped as demand continued to recover after the recession. The company predicted even better results in the new quarter.

Recommended for you

Turner channels removed from Dish amid pact spat

2 hours ago

Channels such as Cartoon Network and CNN are no longer part of Dish's programming lineup as a deadline has passed for the satellite TV provider and Turner Broadcasting to renew their distribution agreement.

Verizon reports higher 3Q net income, revenue

3 hours ago

Verizon Communications Inc. on Tuesday reported higher net income and revenue in its third quarter, helped by strong wireless subscriber growth and demand for its high-speed FiOS Internet services.

Amazon, Simon & Schuster sign book retail deal

11 hours ago

Amazon has reached a deal with American book publisher Simon & Schuster, the companies said, though the e-commerce giant remains at loggerheads with France's Hachette over e-book pricing.

User comments : 0