CORRECTED-UPDATE 1-Data storage equipment maker EMC affirms profit forecast
(Corrects headline, paragraph 1 and paragraph 4 to say EMC affirmed its profit forecast. Corrects paragraph 7 to say EMC affirmed its revenue forecast. The forecasts announced on Wednesday conform with changes EMC had foreshadowed in January.)
April 23 (Reuters) - EMC Corp, the world's largest maker of data storage equipment, affirmed its full-year earnings forecast, citing acquisition-related costs in its VMware Inc unit.
EMC's shares fell nearly 5 percent at open on the New York Stock Exchange on Wednesday.
VMware, in which EMC owns an 80 percent stake, said in January it would buy mobile security company AirWatch for $1.54 billion.
EMC affirmed its full-year adjusted profit forecast at $1.90 per share. Analysts were expecting a profit of $1.94 per share.
VMware on Tuesday reported a better-than-expected first-quarter revenue but acknowledged a delay in closing some of its enterprise license agreements.
VMware shares fell as much as 11 percent in early trade.
EMC affirmed its full-year revenue forecast of $24.58 billion. Analysts were expecting revenue of $24.51 billion, according to Thomson Reuters I/B/E/S.
EMC's revenue rose to $5.48 billion in the first quarter ended March 31, above the average analyst estimate of $5.43 billion.
Revenue in the company's information infrastructure business, which mainly supplies data storage equipment, fell 3 percent. The unit accounts for 74 percent of EMC's total revenue.
EMC and VMware last year announced a joint venture, Pivotal Inc, to cash in on growing demand for data analytics software.
EMC's net income fell to $392 million, or 19 cents per share, in the quarter from $580 million, or 26 cents per share, a year earlier.
Excluding items, the company earned 35 cents per share, meeting analysts' expectations, according to Thomson Reuters I/B/E/S.
The company also increased its quarterly cash dividend by 15 percent to 11.5 cents per share.
EMC's shares were down 4.6 percent at $25.56, while VMWare shares were down 8.69 percent at $96.02. (Reporting by Soham Chatterjee; Additional rporting by Sruthi Ramakrishnan; Editing by Saumyadeb Chakrabarty; and Sriraj Kalluvila)
- Alabama man gets $1,000 in police settlement, his lawyers get $459,000
- Canada PM vows crackdown after capital shocked by fatal attacks |
- Man arrested after jumping White House fence, causing lockdown
- Probe: Athletes took fake classes at University of North Carolina
- U.S.-led air strikes killed 521 fighters, 32 civilians in Syria: monitor