EMC's 2Q Profit Down 43% Amid Restructuring; View Upbeat

EMC Corp.'s (EMC) second-quarter earnings slid 43% as information-technology customers continued to pare spending.

The company also gave its first forecast for 2009, projecting results above analysts' expectations. It sees earnings of 82 cents and revenue of $13.8 billion, both excluding its pending $2.2 billion acquisition of Data Domain Inc. (DDUP). Analysts surveyed by Thomson Reuters projected 78 cents and $13.49 billion, respectively.

Also, third-quarter revenue is seen rising 2% to 3% from the second quarter's $3.26 billion. Analysts anticipated $3.38 billion.

Shares rose 4.8% premarket to $15.10 as second-quarter results also topped estimates.

EMC has pushed aggressive cost-cutting since the start of the year, announcing in January it would eliminate 2,400 jobs to save $350 million. It said in April it would reduce costs by another $100 million. It has asked employees to take a 5% pay cut but didn't foresee additional layoffs.

EMC's earnings fell to $205.2 million, or 10 cents a share, from $360.1 million, or 17 cents a share, a year earlier. Excluding restructuring and other costs, profit fell to 18 cents from 24 cents.

Revenue dropped 11% to $3.26 billion, or 8% excluding currency changes. Revenue from VMWare Inc. (VMW), in which EMC holds a majority stake, contributed $455 million to the top line.

Analysts polled by Thomson Reuters expected per-share earnings of 16 cents on revenue of $3.2 billion.

 
   -By Melissa Korn and  Kevin Kingsbury, Dow Jones Newswires; 212-416-2354; [e-mail]