EMC Revenue Up Slightly, But Profits Dip 32 Percent
The company charted $5.48 billion in overall sales that, with all the bills paid, resulted in profit of $392 million.World data storage market leader EMC said April 23 in reporting its Q1 2014 earnings that its first-quarter revenue increased a modest 2 percent, but also that its profits slipped a worrisome 32 percent. The Hopkinton, Mass.-based company charted $5.48 billion in overall sales that, with all the bills paid, resulted in a profit of $392 million (19 cents a share). That number was way down from $580 million (26 cents a share), from the like 2013 quarter. With this in mind, EMC lowered its earnings guidance for 2014 by 5 cents to $1.90 a share. It now has on the books a new projection for full-year revenue of $24.58 billion—not a very large change from its prior forecast of $24.5 billion. The stock price was down 3.2 percent in after-hours trading at $25.91.
EMC, which has topped the storage hardware marketshare charts for about the last 10 years ahead of NetApp, Dell and IBM, is seeing its influence marginalized more and more by enterprise cloud storage services such as Amazon Web Services, Microsoft, Hewlett-Packard, Egnyte, Nasuni, Nexenta, CommVault, IBM and Oracle.
"While planned business practice changes had a negative impact on year-over-year revenue and EPS growth in the quarter, we are very confident we are on the right track." Overall, EMC's stock price is up 6.4 percent thus far this year.