EMC's third quarter earnings report highlighted slowing revenue growth and a company streamlining operations before Dell takes it over in 2016.
The storage giant reported third quarter earnings of 25 cents a share on revenue of $6.08 billion, up 1 percent from a year ago. EMC had forecasted its results when Dell announced its acquisition plans. Non-GAAP earnings for the third quarter were 43 cents a share.
EMC, VMware form cloud unit built on Virtustream | VMware delivers strong Q3 as CEO optimistic about Dell-EMC deal | Dell, EMC deal could bolster Microsoft vs. VMware | Dell buys EMC for $67 billion: Will bigger be better? | Via Virtustream, EMC lays as-a-service cloud foundation
EMC's results were in line with its preannouncement, but fell short of what Wall Street was expecting originally. Analysts cut estimates after EMC reported its preliminary results last week.
With the Dell merger on tap, EMC's biggest mission is to hold customers and stay focused. In a statement, CFO Zane Rowe said:
We continue to be relentlessly focused on building upon the strength of our portfolio and being more efficient. More specifically, the $850 million cost reduction and business transformation plans are on track, and the team is working on many initiatives in areas such as SKU simplification, facilities and manufacturing optimization, and direct material procurement that span EMC's global operations.
EMC and VMware on Tuesday said they will form a cloud joint venture that equates to a spin-off of the storage giant's Virtustream brand.
By product line, EMC's third quarter information infrastructure revenue fell 3 percent from a year ago. New storage products accounted for more than half of revenue and EMC said XtremIO should have more than $1 billion in bookings in 2015. The Pivotal big data unit delivered revenue growth of 16 percent in the third quarter.