Plummeting sales hit troubled EMC

Blame it on the economic slowdown...

Blame it on the economic slowdown...

EMC has reported a slow down in sales that will see it miss analyst forecasts for its second quarter. The storage giant is now expecting Q2 revenues of $2bn, down from previous analyst estimates of $2.4bn, and even below sales for the corresponding period last year of $2.2bn. Profits will be squeezed as a result. The company has blamed the US general economic slowdown spreading around the world. It also cited sales cycles growing longer, the cost of customer incentive programmes and price cuts. At the start of the year, in spite of imminent lay offs, EMC said it wouldn't be hit too hard by the downturn in spending on IT. Further explanations for the quarterly shortfall will be given when the company reports its Q2 results on 18 July.