(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 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
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
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
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
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
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