EMC Says Acquisition by Dell on Track

EMC Corp. said Dell Inc.'s roughly $60 billion deal for the data-storage company remains on track as the company reported that its second-quarter earnings rose 19%.

The Hopkinton, Mass., company's shares rose 1.1% to $27.85 in recent after-hours trading as per-share earnings, excluding certain one-time items, and revenue beat expectations.

Chief Executive Joe Tucci said the pending cash-and-stock deal, the largest technology merger in history, goes to a vote by EMC shareholders Tuesday. After that, all that will remain is a needed decision from Chinese regulators.

The value of the deal -- partly pegged to publicly traded EMC subsidiary VMware Inc.'s stock -- has declined by roughly $7 billion since it was announced. VMWare's stock price has fallen roughly 20% during the period, while EMC has fallen 1.1%.

Mr. Tucci said, "We had a strong second quarter and are well positioned as we look forward to combining with Dell."

Over all, EMC reported a profit of $581 million, or 29 cents a share, up from $487 million, or 25 cents a share, a year earlier. Excluding stock-based compensation and other items, adjusted per-share earnings rose to 45 cents from 43 cents. Revenue increased 0.3% to $6.02 billion.

Chief Financial Officer Denis Cashman said that adjusting for the effect of a higher-than-expected increase in unshipped orders, caused by the timing of bookings, revenue rose 1%.

Analysts polled by Thomson Reuters expected per-share profit of 41 cents and revenue of $5.99 billion.

Dell Inc.'s parent company Denali Holdings last month reported an operating loss that was wider than it had predicted on costs stemming from the company's pending acquisition of EMC and softer-than-expected sales.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

July 18, 2016 17:35 ET (21:35 GMT)

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