The fog is finally starting to lift. That was the message from storage maker EMC as it reported second quarter earnings and for the first time this year offered guidance. Until now, EMC had declined to issue a formal outlook, saying the economic picture was too murky and tech spending remained unpredictable.
But in projecting full year earnings that beat analyst expectations, EMC signalled that the worst of the downturn was over for it, and perhaps the tech sector. “We now have better visibility and more confidence in the second half of 2009,” said chief financial officer David Goulden.
A brighter future doesn’t mean a painless recent past, however. Profit for the quarter was down 43 per cent to $205m, and revenue was down 11 per cent to $3.26bn. EMC, though, need not worry about cash. Even after it completes its $2.2bn acquisition of Data Domain, it should have around $4bn in net cash.
