Credit Suisse First Boston cut its estimates on EMC (EMC).
Analyst Amit Chopra says the company attributed a shortfall to an unexpected dramatic slowdown in late September; ongoing sluggish demand for new storage capacity additions and tight IT budgets. Chopra notes that the $0.02 third quarter loss on $1.25 billion revenues missed his estimates of a $0.01 loss on revenues of $1.33 billion. Chopra expects a $30 million to $35 million fourth-quarter restructuring charge as the result of a planned 7% workforce reduction, and sees a similar level of cost savings upon completion.
He widened his $0.05 2002 loss estimate to a $0.07 loss. He cut his $0.13 2003 earnings per share estimate to $0.08, and cut the $6.1 billion revenue estimate to $5.7 billion. He also lowered his target to $7 from $8 and maintains his outperform rating.