EMC Sales Meet Estimates on Weaker Demand Ahead of Dell Dealby
EMC Corp., which has agreed to be acquired by Dell Inc., reported sales that met analysts estimates as the largest storage seller faces weakening demand for its products from customers who are increasingly moving their data to the cloud.
- Second-quarter revenue was $6 billion, unchanged from a year earlier. Analysts estimated $6 billion.
- Profit, excluding certain items, was 45 cents a share in the period. Analysts on average had projected 42 cents.
- Shares rose about 1 percent in extended trading after closing at $27.54 in New York.
The Big Picture
EMC has agreed to be bought by Dell Inc. for $67 billion, the largest technology deal in history. The results released Monday are expected to be the company’s last quarterly earnings update, assuming EMC shareholders approve the deal Tuesday at a meeting. The company has been facing a challenging climate for storage machines because more companies are avoiding EMC’s expensive devices to warehouse information in their own data centers and are signing up with companies like Amazon.com Inc. and Microsoft Corp. to store their data in the cloud. EMC has been trying to switch customers to newer and growing technologies like flash storage, but those businesses haven’t been able to make up for the declines.
VMware Inc., which is majority owned by EMC, reported sales and profit that topped analysts’ estimates after the close of trading Monday.