EMC Q4: In line with estimates, job cuts on deck
EMC is holding steady, beating analyst expectations, thanks in part to the BRIC emerging market nations holding up.
EMC reported on Wednesday fiscal fourth quarter net income of $1.02 billion with earnings of 48 cents per share, up 23 percent year-over-year (statement). Non-GAAP earnings were 60 cents per share, on revenue of $6.7 billion, an increase of 11 percent on the year ago quarter.
Wall Street was expecting earnings of 59 cents per share on revenue of $6.64 billion for the quarter.
For the full year, EMC's reported in-line earnings with analyst estimates. Revenue was $23.2 billion, an increase of 7 percent year-over-year, while net income stood at $2.9 billion, on earnings of $1.80 per share.
Wall Street was expecting earnings of $1.80 per share on revenue of $23.18 billion for the full year.
EMC chief executive Joe Tucci said in prepared remarks that the company's fourth quarter results were "further evidence" that its federation strategy was on target.
"There's no doubt that the move from the second platform to the third platform of IT, underpinned by the mega trends of mobile, cloud, Big Data and social, is having a profound impact on business and transforming the way we work and live. Customers and partners have these transformations in their sights and are embracing EMC's vision, strategy and best-of-breed portfolio to capitalize on them."
EMC also announced it would restructure its business, which will result in cash payments between $95 million and $114 million, a filing with the U.S. Securities and Exchange Commission said. The restructuring will go ahead during the first quarter, ending March, to be fully completed by the end of the 2014 calendar year.
It's not clear at this stage how many jobs will go, however. EMC currently employs more than 60,000 people around the world.
The company fell in early trading by as much as 5 percent on the New York Stock Exchange, but quickly recovered.
Looking ahead, EMC forecast earnings per share excluding certain items of 35 cents, down by the average analyst consensus of 43 cents.