EMC’s Q4 Loss Beats Street

Enterprise Storage Forum content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

Data storage leader EMC posted narrower fourth-quarter losses, the result of aggressive
cost-cutting measures and a sales approach that acknowledges leaner IT budgets.

The Hopkinton, Mass., firm posted a net loss of $70 million, or 3 cents a diluted share, compared with net income of $562.8 million, or 25 cents a diluted share, in
the year-ago quarter.

Analysts expected a loss of 4 cents to 10 cents a share, with a consensus loss estimate of 7 cents a share, according to Thomson Financial/First Call. While
improved, it marks the once bulletproof company’s second consecutive quarterly loss, unprecedented in the last dozen years.

Fourth quarter revenue was $1.51 billion, 25 percent gain over the $1.21 billion in the previous quarter. All segments showed improvement, with storage area
networks leading the way.

“It’s great to finish the year with momentum,” said EMC CEO Joe Tucci said. “Last year was painful for the entire technology sector, and it forced EMC to
become a better company in many respects.”

EMC described the company’s actions in the fourth quarter as a “three-pronged attack” that included cutting 4,000 workers, impressed upon the sales force to
pushes lower-end storage systems and lowering inventories.

“We reduced costs ahead of our own schedule, improved margins and achieved higher customer satisfaction levels,” said Bill Teuber, EMC’s CFO. “Our
cash and investments increased to $5.1 billion at the end of the year, now representing more than 50 percent of total assets, with virtually no debt.”

Shares of EMC jumped 1.7, or 12 percent, to 16.26 in morning trading. In the last 52 weeks, the issue has ranged from 10.01 to 82.

Get the Free Newsletter!

Subscribe to Cloud Insider for top news, trends, and analysis.

Latest Articles

15 Software Defined Storage Best Practices

Software Defined Storage (SDS) enables the use of commodity storage hardware. Learn 15 best practices for SDS implementation.

What is Fibre Channel over Ethernet (FCoE)?

Fibre Channel Over Ethernet (FCoE) is the encapsulation and transmission of Fibre Channel (FC) frames over enhanced Ethernet networks, combining the advantages of Ethernet...

9 Types of Computer Memory Defined (With Use Cases)

Computer memory is a term for all of the types of data storage technology that a computer may use. Learn more about the X types of computer memory.