EMC profits down in Q1 due to costs

Write a Comment

By Emily Micucci

Hopkinton-based EMC Corp. saw net income decline by $188 million in the first quarter, to $392 million, as costs increased, but revenue increased 2 percent to $5.5 billion.

David Goulden, EMC’s chief financial officer, said in an earnings statement that “planned business practice changes” had a negative impact on revenue and earnings growth in the first quarter, which ended March 31. But he said the company is “at the threshold of expansive opportunity.”

“With our strong foothold in second platform environments and some of the most exciting IT assets in the industry helping us propel customers to the Third Platform of IT, EMC is well-positioned to meet our stated 2014 targets,” said Goulden, referring to emerging platforms serving cloud, mobile and social technologies.

Earnings for shareholders declined in the first quarter to 19 cents per share, compared to 26 cents a year earlier. But EMC met its projection for earnings of 35 cents per share, excluding certain items, which was in line with analysts’ estimates.

EMC lowered its full-year earnings guidance to $1.90 per share, down from an earlier forecast of $1.95. A spokeswoman for the company said this was due to the acquisition of AirWatch, which EMC subsidiary VMware agreed to purchase in January for $1.54 billion. Executives said in a fourth-quarter earnings call that the deal would cost approximately 5 cents per share in 2014.