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EMC Q2 Preliminary Report Misses its Earlier View

Data storage equipment maker EMC has reported second quarter preliminary results lower than its earlier forecasts, citing faster-than-anticipated customer transition to its Symmetrix DMX-3 platform and later-than-expected orders from customers.

The company said while product bookings finished strongly for the quarter, up 14 percent from the same period a year ago, the volume and mix of orders at the end of the quarter prevented EMC from fulfilling all of the customer demand for its Symmetrix systems.

The company now expects earnings of 12 cents a, including a charge of 2 cents per share for stock option expense, an additional 2 cents per share expense related to amortization of intangible assets and other equity compensation, and a 1 cent a share tax benefit received during the quarter. The company had earlier expected to earn 13 cents a share.

Joe Tucci, EMC Chairman, President and Chief Executive Officer, said, "We received more customer orders than we anticipated very late in June for our new EMC Symmetrix DMX-3 systems, and fewer than anticipated customer orders for our prior-generation Symmetrix DMX-2 systems, and we therefore did not have the right inventory mix to fulfill demand as we closed the quarter."

It also lowered its total consolidated revenue for the quarter to about USD 2.575 billion, compared with its earlier expectation of at least USD 2.66 billion.


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