EMC Will Gain ‘Significant’ Market Share in Slowdown (Update2)
By Kevin Bell
March 10 (Bloomberg) -- EMC Corp., the world’s biggest maker of storage computer products, will gain “significant” market share as the economy slows, Chief Executive Officer Joseph Tucci said. The shares advanced the most in six weeks.
The company is planning an announcement on flash technology, Tucci said today at an investor conference in Boston. EMC also expects to ship new virtualization products this year, which allows computers to run multiple operating systems.
EMC will maintain investments in research and development -- amounting to 12 percent of revenue, Tucci said. The company, with 33 percent of the network storage market, aims to boost sales from software and services, which are more profitable than storage computers. In November, EMC said it formed a new company to sell Internet services that help customers store and manage personal data. The changes will help the company through the recession
“The weak will feel it more than the strong, and we do believe we are going into it strong,” Tucci said. “We are going to, across the board, make sure we gain share in this environment.”
EMC, based in Hopkinton, Massachusetts, climbed 81 cents, or 8.2 percent, to $10.66 at 4:02 p.m. in New York Stock Exchange composite trading, its biggest gain since Jan. 28. The shares have risen 1.8 percent this year.
The recession led EMC in January to announce 2,400 job cuts, amounting to 7 percent of the workforce. The plan will bring savings of $350 million this year and $500 million in 2010, the company said.
Tucci said today he’s resisting cutting sales people. “We’re doing everything we can to make sure we preserve the maximum number of people in the field around our customers.”
To contact the reporter on this story: Kevin Bell in Toronto at kbell2@bloomberg.net
Last Updated: March 10, 2009 16:09 EDT |
