EMC second-quarter profit down 75 percent
BOSTON, July 18 (Reuters) - EMC Corp. (NYSE:EMC - news) on Wednesday said second-quarter earnings fell 75 percent, meeting the range of its lowered estimates, as the No. 1 data-storage systems maker cut prices to spur demand for devices that store information generated by computer network traffic.
Hopkinton, Massachusetts-based EMC said it earned $109 million, or 5 cents a diluted share. That compared with a profit of $429 million, or 19 cents a diluted share, in the year-ago period.
EMC on July 5 warned that earnings would fall between 4 cents and 6 cents a share on revenue of about $2 billion. The lowered outlook, its second in four months, triggered a sell-off that erased about $16 billion in shareholder value.
Total consolidated revenue at EMC dropped 6 percent to $2.02 billion in the second quarter, compared with $2.15 billion in the year-ago period.
Shares of EMC closed Tuesday at $20.39. The stock is off 69 percent this year, underperforming the 8 percent decline in the S&P 500 Index. |
