as if you weren't already aware, EMC's open was delayed this a.m. apparently, HP is gearing up to compete.
EMC down $10 at one point. states revenue still expected to grow 30%.
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EMC Falls on Report Hewlett-Packard May Sell Rival Devices
Hopkinton, Massachusetts, May 4 (Bloomberg) -- Shares of EMC Corp., the No. 1 maker of corporate computer-storage systems, fell as much as 10 percent following a report that its largest reseller, Hewlett-Packard Co., plans to sell devices made by rival Hitachi Data Systems.
EMC plunged 8 1/2 to 98 1/2 in midmorning trading of 4.87 million shares, after touching 96. The Wall Street Journal reported that Hewlett-Packard will resell equipment made by Hitachi, which could alter H-P's relationship with Hopkinton, Massachusetts-based EMC.
EMC makes devices used by companies to store data like billing information and Internet Web sites. It gets about 13 percent of its revenue from Hewlett-Packard, and a sales agreement with Hitachi might jeopardize that, analysts said. ''H-P is important to EMC,'' said Brian Goodstadt, an S&P Equity Group analyst, who rates EMC a ''buy.'' However, Goodstadt said that EMC ''has nine other companies that also resell their machines.''
EMC and Hewlett-Packard, the world's No. 2 computer maker, weren't immediately available for comment. |
