EMC suffers Q1 drops in profits, revenue

CEO says the storage company executed its business strategy despite a 'very tough economy'

Citing a "a very tough economy," EMC Thursday reported first-quarter earnings that showed a 23 per cent drop in profits and a 9.2 per cent fall in revenue.

Revenues fell from US$3.47 billion to $3.15 billion, while net income plummeted from $251.6 million to $194.1 million compared with the same quarter a year ago. EMC's Information Infrastructure business revenue for the first quarter, which includes Storage, RSA Security, and Content Management & Archiving, was $2.7 billion -- down $300 million year over year.

EMC CEO Joe Tucci said even with the dramatic revenue drop, the company executed its business strategy to reduce expenses and grow sales within "a very tough economy." Tucci said he expects IT spending to improve in the second half of 2009 as companies move along in their restructuring programs and the federal government's stimulus packages takes affect.

"As we look to the balance of 2009, we believe the global IT spending environment has reached -- or is very near -- the bottom," he said in a statement released this morning.

One of the few bright spots was EMC's VMware subsidiary, which showed a 7.4 per cent increase in first quarter revenue compared with the same period last year for a total of US$470.4 million. The Hopkinton, Mass.-based company also reported that it has record cash and investments amounting to $9.8 billion.

In January, EMC announced plans to lay off 2,400 employees or about 7 per cent of its total work force, which, along with other restructuring, is expected to save the company about US$500 million annually beginning in 2010.

EMC did not offer revenue or any other financial outlook citing the current "macro economic conditions."

Looking ahead, Tucci said EMC will focus on products that support and promote market strategies, such as the virtual data center and cloud computing. EMC recently announced a new version of its EMC introduces x86-based Symmetrix array for cloud storage, which moved away from its proprietary, monolithic past with a more modular architecture based on Intel's x86 multicore processor and tightly integrated with VMware's APIs, enabling it to more seamlessly support virtual server environments.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags emc

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Lucas Mearian

Lucas Mearian

Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill


I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?