(Adds analyst quote; updates share movement)
April 23 EMC Corp, the world's largest
maker of data storage equipment, reported a better-than-expected
quarterly revenue, but its shares fell after majority-owned
software maker VMware Inc reported weak growth in
VMware, in which EMC owns an 80 percent stake, said on
Tuesday there had been a delay in closing some large contracts
in the first quarter, overshadowing better-than-expected
EMC's shares were down 3.8 percent at $25.73 in afternoon
trading on the New York Stock Exchange on Wednesday. VMware
shares were down 9 percent at $95.11.
"(EMC) beat Street expectations in its "bread-and-butter"
storage business given accelerating growth ... on its emerging
storage business, which we believe remains a key ingredient in
the company's recipe for success in 2014/2015," FBR Capital
Markets analysts Daniel Ives said in a note.
EMC affirmed its full-year adjusted profit forecast at $1.90
per share as foreshadowed in January to take into account
VMware's $1.54 billion AirWatch acquisition in January. Analysts
on average expect a profit of $1.94 per share.
EMC also 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, topping the average analyst estimate of $5.43
The company'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 and Sruthi Ramakrishnan; Editing
by Saumyadeb Chakrabarty; and Sriraj Kalluvila)