EMC Corp. lowers outlook, will cut jobs

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Data-storage giant EMC Corp. reported Thursday that it had closed the fourth quarter with a 12 percent increase in net income, but missed the mark on revenue expectations.

Full-year profit, EMC predicted, will be $1.98 a share on sales of $26.1 billion. Analysts, though, had estimated earnings of $2.13 on revenue of $26.3 billion, Bloomberg reported. Revenue fell short of expectations in part because of shifts in currency exchange rates because of a stronger U.S. dollar, the Hopkinton-based company said.

EMC reported $7 billion in fourth-quarter consolidate revenue, up five percent from the previous year. GAAP net income attributable to EMC was $1.15 billion, an increase of 12 percent from the previous year.

In addition, the company will cut an unspecified number of jobs in 2015. According to iMarket Reports, EMC management approved a restructuring plan Wednesday that includes a workforce reduction, which will be substantially completed by the end of the first quarter of 2015.“Our strong operational results were impacted by currency fluctuations and EMC’s investments in high-growth businesses,” Zane Rowe, EMC CFO, said. “While we expect these factors to continue to impact 2015 results, we remain focused on driving growth for shareholders and delivering best-in-class solutions for customers.”

EMC has been under pressure by Elliott Management Corp. since last summer to spin off VMware Inc. and perhaps other holdings. Thursday’s statement from EMC did not mention any such plans.