IBM's storage resultsBy Reuters | Posted 2008-10-22 Email Print
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IT storage vendor EMC forecast earnings for the current quarter at the low end of Wall Street expectations on slower spending on information technology. EMC CEO Joseph Tucci said he saw a challenging economic environment ahead and Tucci said he expected IT spending to grow between 1 percent and 3 percent next year.
The results come after rival International Business Machines Corp (IBM.N: Quote, Profile, Research, Stock Buzz), which sells competing storage equipment and software, reported weaker-than-expected sales and stronger-than-expected profit earlier this month.
For Hopkinton, Massachusetts-based EMC, growth in the United States was the slowest, with revenue climbing 7 percent. Revenue rose 20 percent in Europe, the Middle East and Africa, gained 19 percent in Asia, and 27 percent in Latin America.
Sales at EMC's storage hardware business, its largest unit, rose 11 percent to $2.9 billion. Revenue at its fledgling security division rose 11 percent to $147 million.
Sales at its content management and archiving software unit, which competes with products from IBM, fell 1 percent to $188 million.
Revenue from its VMware infrastructure software division rose 33 percent to $472 million.
Shares of EMC were up 7 percent at $10.46 in pre-market trading, compared to their Tuesday close of $9.69 on the New York Stock Exchange. VMware shares were up 14.7 percent at $21.48, from their previous close of $18.73. (Reporting by Jim Finkle; Editing by Derek Caney)
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